(Yicai Global) March 13 -- Shuangliang Eco-Energy Systems, a Chinese manufacturer of photovoltaic wafers, signed a supply deal with a solar energy equipment maker that is expected to be worth CNY2.7 billion (USD392 million).

Shuangliang Eco-Energy’s unit in Baotu, Inner Mongolia Autonomous Region, will provide 334 million large-size solar wafers to Eging Photovoltaic Technology this year, the Jiangyin, Jiangsu province-based company said in a statement late yesterday.

The deal is expected to be worth CNY2.7 billion, according to InfoLink Consulting’s average market price of monocrystalline silicon wafers, Shuangliang Eco-Energy noted, adding that the pair will negotiate volumes and prices at the end of each month.

Shuangliang Eco-Energy’s large-size monocrystalline wafers have gained more recognition from high-quality downstream customers and the market, which has a positive impact on the company’s long-term sales, it pointed out.

The company’s Baotou production base has secured long-term wafer supply deals worth more than CNY90 billion (USD13.1 billion) since it began selling products in the second half of 2021.

Thanks to rising solar wafer prices and increased output at its new production base, Shuangliang Eco-Energy expects to have made a net profit of between CNY950 million and CNY1.1 billion (USD137.7 million and USD159.4 million) last year, up 206 percent to 239 percent from 2021, according to its earnings forecast released in January.

Shares of Shuangliang Eco-Energy [SHA: 600481] closed up 1.1 percent at CNY13.88 (USD2.01) each in Shanghai today.

Eging makes solar cells and panels, with the annual capacity to turn out 10 gigawatts of panels, according to its website. The firm also builds and operates solar power plants.

Eging’s stock [SHA: 600537] fell 1.2 percent to end at CNY7.59 (USD1.10) today.

Editor: Futura Costaglione