(Yicai Global) Aug. 24 -- Chinese photovoltaic giant JA Solar Technology announced a private placement plan worth CNY5 billion (USD770 million) yesterday, with the aim of raising funds to expand production capacity.

The Hebei province-based company said it will raise the funds from up to 35 specific investors, and the amount of shares issued will not exceed 30 percent of the total share capital prior to the issuance.

CNY3.2 billion (USD493.9 million) of the funds raised will go toward building a facility for production of monocrystalline silicon rods and wafers, with an annual capacity of 20 gigawatts. CNY300 million will be for a test project for research and development of high-efficiency solar cells, and the remaining CNY1.5 billion will supplement working capital, the company said.

The silicon rod and wafer project will have total investment of about CNY5.9 billion, and it will be built in southwestern Yunnan province, which boasts abundant electricity and water resources. The construction is scheduled to take about two years, the company said, and the products will mainly be used to guarantee raw material supplies for downstream solar module projects.

In the first half, JA Solar’s shipment of solar modules ranked third worldwide and its business revenue jumped by 48.77 percent year-on-year to CNY16.2 billion (USD2.5 billion) amid a surge in construction of photovoltaic power stations. However, net profit was only CNY540 million, down 27.95 percent yearly, because high raw material prices pushed up operating costs, according to the company’s first-half performance report released yesterday.

JA Solar Technology [SHE:002459] closed up 5.32 percent at CNY62 (USD9.6) today.

Editor: Tom Litting