(Yicai Global) Jan. 18 -- Shares in Shuangliang Eco-Energy Systems surged as much as 8.76 percent today after the Chinese photovoltaic wafer manufacturer said its unit in Inner Mongolia Autonomous Region has signed a new sales contract worth CNY6.3 billion (USD992 million).

Shuangliang Eco-Energy’s share price [SHA:600481] closed up 5.81 percent at CNY10.75 (USD1.70).

Shuangliang Silicon Material Baotou will supply solar panel producer Tongwei Solar with 1.05 billion pieces of large-sized monocrystalline silicon wafers over the next three years, the Jiangyin, eastern Jiangsu province-based parent firm said yesterday.

Prices will be negotiated on a month-by-month basis, Shuangliang Eco-Energy said. But based on data provider PV InfoLink’s latest pricing, it is worth around CNY6.3 billion.

Shuangliang Eco-Energy is investing CNY14 billion (USD2.2 billion) to build at 40-gigawatt facility in Inner Mongolia run by Shuangliang Baotou. The first phase, with an annual output of 20 GW, began production last September. It is expected to be completed next year.

Already six clients, not including Chengdu, southwestern Sichuan province-based Tongwei, have been secured for the new production base with sales contracts tallying around CNY41.4 billion (USD6.5 billion).

Shuangliang Eco-Energy is expecting net profit to gain up to two-and-half times last year from the year before to CNY250 million (USD39.4 million) as demand for solar products soars, the firm said on Jan. 15.

Editor: Kim Taylor