(Yicai Global) Jan. 13 -- Longi Green Energy Technology, which makes nearly half of China's monocrystalline silicon wafers, will provide Suzhou's Run Sunshine Technology with such solar power equipment for three years, gaining an estimated CNY10 billion (USD1.4 billion) in the process.
Longi and panel parts maker Run Sunshine penned a contract regarding 3.8 billion monocrystalline wafers, the Xi'an-based seller said in a statement.
The contract will increase Longi's market share and affect its earnings this year, the supplier said. The pair will agree on the exact price later but based on the current market prices, the deal would amount to over CNY10 billion. The contract equals 47 percent of Longi's audited revenue in 2018, it said.
Longi is expanding its production in northwestern China's Ningxia Hui Autonomous Region, and Yunnan province, to boost its total capacity by 60 percent to 80 gigawatts by the end of this year. Its monocrystalline wafers, used in solar panels, are considered more efficient than polycrystalline ones.
Longi's shares [SHA: 601012] rose 0.9 percent to CNY28.83 (USD4.20) this morning.
Editor: Emmi Laine