Eleven Technology is the largest integrated circuit engineering design institute in China and has a market-leading position in the solar photovoltaic engineering industry. According to the agreement, Fangda Group is responsible for the investment, construction, and operation of photovoltaic power stations; Eleven Technology is responsible for providing project resources for photovoltaic power station construction to Fangda Group, and will provide approximately 500MW of project resources for Fangda Group to choose from by the end of 2015, reaching 2.5GW by 2020; Eleven Technology provides Fangda Group with comprehensive technology, design, and general contracting services for photovoltaic power stations.
Fangda Group established a wholly-owned subsidiary, Shenzhen Fangda New Energy Co., Ltd. (hereinafter referred to as: Fangda New Energy Company) on June 21, 2014, to develop new energy and energy-saving technologies such as solar photovoltaic applications, photovoltaic building integration and LED industry. At present, Fangda Group's LED and solar photovoltaic new energy industry strategies are moving forward in an all-round way, and various measures are gradually implemented. On July 18, 2014, Fangda New Energy Company signed an agreement to acquire LED companies. It is predicted that after the merger, the LED industry will achieve sales revenue of 150 million yuan and net profit of 3 million yuan from July to December 2014. In 2015, it will achieve sales revenue of 600 million yuan and net profit of 36 million yuan. In 2016, it will achieve sales revenue of 1 billion yuan and net profit of 60 million yuan. On July 22, 2014, Fangda Group signed a strategic cooperation framework agreement with Bank of China Shenzhen Branch for credit support of 5 billion yuan. According to current industry estimates, investment in the construction of a 500MW photovoltaic power station requires approximately RMB 5 billion in capital investment. The completion and operation of the photovoltaic power station will bring relatively stable income to Fangda Group and will have a significant impact on Fangda Group's future revenue and profit composition.
ANNA