(Yicai Global) Jan. 3 -- Shares in Allwin Telecommunication hit the exchange-imposed limit today as markets opened on the first day of trading in 2023 after the Chinese telecoms equipment supplier said it is linking arms with new energy firm Shangyi Shanghai Energy Technology to build a CNY4.5 billion (USD651 million) solar battery and panel plant.

Allwin’s share price [SHE:002231] closed up 10 percent at CNY9.10 (USD1.30).

The factory, which is set to be finished in three years’ time, will have an annual output of five gigawatts of ultra-high-efficiency heterojunction photovoltaic cells and 5 GW of modules, the Shenyang, northeastern Liaoning province-based firm said yesterday.

It is Allwin’s first foray into the PV sector. The project will allow the firm to tap into the exponential growth in demand for new energy equipment worldwide and boost business performance, it said.

Once fully up and running, the factory should achieve gross profit of CNY900 million (USD130 million) a year and revenue of CNY8 billion (USD1.1 billion), Allwin said.

Allwin and Shangyi will set up a joint venture to take charge of the plant's investment, construction and operation. Allwin will hold a 51 percent stake through the cash injection of CNY210 million (USD30.4 million) while Shangyi will own the remaining equity by providing tech and intellectual property worth CNY200 million.

Shangyi owns a patented method for the design and preparation of HJT solar batteries, which boast higher energy output than conventional PV cells, lowering the costs of solar power generation.

Built in three stages, the first phase of the factory should be ready in the first year and have a yearly capacity of 1 GW of batteries and 0.5 GW of modules. While the second phase will add another 2 GW of cells and 2 GW of panels when ready the following year. The rest will be finished in the third year.

Editor: Kim Taylor