Suzhou THVOW Technology Holdings Ltd. (short for THVOW Technology, stock code: 002564), a listed company on Shenzhen security market, invested RMB1570 million in concentrated solar power (CSP) industry by way of non-public offering of shares, which has drawn wide attention from capital market and CSP industry.
THVOW Technology became the largest shareholder of Yumen Xinneng project
On March 17, THVOW Technology issued its plan of 2017 non-public offering of shares. The plan showed that the total amount of collected fund will be not more than RMB1570 million, which will be invested in the construction and operation of Yumen Xinneng’s First Electric Power Co., Ltd. (short for Yumen Xinneng) 50MW Molten Salt Tower CSP project.
Yumen Xinneng 50MW Molten Salt Tower CSP project is one of China’s first 20 CSP demonstration projects, which adopts an innovative secondary reflection CSP technology. The total investment amount of this project is RMB1790 million.
Yumen Xinneng, the owner of this project, is a joint venture invested by Shanghai Parasol Renewable Energy Company (short for Shanghai Parasol) and Shanghai Jutai Energy Investment Management Company (short for Shanghai Jutai). Until March 18, THVOW Technology, Jiangsu Xinchen and Shanghai Parasol have signed an equity transfer agreement with Shanghai Jutai. After the completion of equity transfer, the ownership structure of Yumen Xinneng will be changed to THVOW Technology 85%, Shanghai Parasol 5% and Jiangsu Xinchen 10%. THVOW Technology will be the largest shareholder of this project.
A CSP project needs a huge capital injection. One big obstacle project owners who are private enterprises are facing is financing issues. Yumen Xinneng solved the financing problem through its cooperation with THVOW Technology, which may have a reference value for other project owners.
China Sinogy became the EPC contractor of Yumen Xinneng project
In fact, Yumen Xinneng ‘s cooperation with THVOW Technology is not just on financial aspect. China Sinogy Electric Engineering Co., Ltd. (short for China Sinogy), a subsidiary of THVOW Technology, now has become the EPC contractor of this project.
On March 16, China Sinogy released an announcement, which showed that China Sinogy had been confirmed as the general EPC contractor of Yumen Xinneng 50MW CSP demonstration project. Bid price is RMB1613 million. Project construction period is predicted as 19 months.
China Sinogy, whose headquarter is located in Shanghai, has a background of state-owned enterprise. Now, China Sinogy is a subsidiary of THVOW Technology, and has a Grade A design qualification of national electrical engineering and also a qualification of project general contracting.