Xinte Energy Heats Up 5% on $3.9 Billion Sale of Raw Materials to JA Solar

The solar company plans on delivering the materials between 2022 and 2026.
Anthony RussoApr 29,2021,16:30

Shares in Xinte Energy (HKEX: 01799) rose as much as 5% on fellow solar company JA Solar ordering 25 billion yuan ($3.86 billion) worth of raw materials.

A unit of JA Solar signed a deal to receive the materials for its new solar cell module production lines, according to a statement posted Wednesday by the company, as cited by Yicai Global.

According to a separate statement by Xinte, it plans on delivering the materials to JA Solar between 2022 and 2026. The exact prices will be determined each month.

Recently, both companies have been looking to expand their production capacity. Last week, JA Solar struck a five-year deal with Asia Silicon to buy roughly 75,000 tons of polysilicon. That along with today’s deal will help the Beijing-based company's module production capacity surpass 40 gigawatts by the end of the year, according to JA Solar. Silicon wafers and cells are expected to account for 80% of the capacity.

Also this month, Urumqi-based Xinte said it would pour 1.3 billion yuan to raise its annual polysilicon production capacity to 100,000 tons from 66,000 tons. In March 2020, Xinte noted it would establish a new high-purity polysilicon production line in the Inner Mongolia region by spending 8.8 billion yuan.

Formerly, JA Solar was listed on Nasdaq under the symbol "JASO," but completed a deal to go private for $362.1 million in July 2018. Now, JA Solar is listed in Shenzhen.

Shares in Xinte have surged 94% year-to-date.

Topics:Xinte Energy, JA Solar.