San An Photoelectric Signed 450 Million Yuan LED Sales Contract

In December 7th, the 600703.SH, the largest semiconductor lighting engineering company in China, announced that the company signed a contract with the Huainan urban and Rural Construction Committee in December 4, 2010.

The company also announced that the company and the EM-CORE Corporation of the United States and the Wuhu Municipal People's government agreed to terminate the investment cooperation agreement on the ground application of high-power concentrating solar power generation system and component projects.

The company said the termination of the agreement was due to the fact that the site for the cooperation project was not yet available for construction.

The joint venture will be rebuilt in Huainan, Anhui.

The company said that the company passed the motion of the company and EMCORE Corporation to sign the investment cooperation agreement on the ground application of high-power concentrating solar power generation system and components project with the Huainan Municipal People's Government of Anhui province.

On the morning of December 4th, the signing ceremony of the project investment cooperation agreement was held in Hefei.

According to the agreement, the Huainan Municipal People's government provides the joint venture company with no less than 1600 mu of land for industrial projects, which is divided into two phases. The total construction scale of the project is 1000MW photovoltaic system and components annually, with a total investment of 8 billion yuan, with a construction period of 5 years and three phases.

In the first phase, the annual production of PV system and component 200MW production line was completed and put into operation at the end of 2011. In the second phase, the new annual production of PV system and component 300MW production line was put into operation at the end of 2013. In the third phase, the new annual production of PV system and component 500MW production line was put into operation at the end of 2015.

In addition, the Huainan Municipal People's government decided to give a series of preferential policies to the joint venture company. In the 3 working days from the date of the first phase of the joint venture project, the Huainan Municipal People's government paid the financial subsidy to the Huainan account designated by the joint venture company for 500 million yuan, subsidized the joint venture company to purchase relevant production equipment, and at the same time, after the joint venture was put into operation, the total amount of 1000MW was limited, and the product was subsidized by 1.4 yuan per product 1W.