(Yicai Global) Nov. 19 -- China's GCL-Poly Energy expects to gain CNY26.2 billion (USD4.1 billion) by selling solar wafer raw materials to photovoltaic equipment manufacturer Shangji Automation over the next four years.

A unit of GCL-Poly Energy will provide Shangji with 97,500 tons of polysilicon, the Hong Kong-based seller and the Shanghai-based buyer each said in separate statements yesterday. Based on the current prices, the contract should equal CNY26.2 billion.

The pair is deepening its partnership. In September 2020, Shangji agreed to buy 16,700 tons of polysilicon from GCL-Poly Energy till December 2021. Moreover, the major Chinese monocrystalline silicon wafer supplier pledged to purchase another 31,000 tons of polysilicon from the seller between June 2021 and December 2023.

The demand for Shangji's wafers, produced by its factory in northern China’s Inner Mongolia, has been strong, prompting the Wuxi-based firm to actively seek capacity expansion while ensuring a stable supply of raw materials.

In the first half of this year, Shangji's annual output of monocrystalline silicon wafers grew by 13 gigawatts to 20GW, according to its earnings report. Furthermore, the company is currently increasing its output by 10GW.

From January to June, GCL-Poly Energy made a net profit of CNY2.4 billion (USD376 million) after reporting a loss in the past three years. Meanwhile, revenue climbed by 22.3 percent from a year ago.

Shares of GCL-Poly Energy [HKG: 3800] were 0.6 percent up at HKD3.40 (40 US dollar cents) in the afternoon.

Shangji's stock price [SHA: 603185] climbed 3.7 percent to CNY236.81 (USD37.10).

Editor: Emmi Laine, Xiao Yi