Goldpoly Rises After Buying Solar Developer: Hong Kong Mover

Jan. 21 (Bloomberg) -- Goldpoly New Energy Holdings Ltd., a Hong Kong-based solar cell maker, rose the most in more than five years after it agreed to buy the 92.2 percent stake it doesn’t own in power-plant developer China Merchants New Energy Holdings Ltd. for HK$2.12 billion ($273 million).

The stock jumped as much as 44 percent, the biggest intraday increase since Sept. 28, 2007, to HK$1.83 and traded at HK$1.55 as of 10:37 a.m. in Hong Kong trading. The benchmark Hang Seng Index rose 0.1 percent.

Goldpoly, which owns 7.8 percent of China Merchants at present, will buy a 17.4 percent stake in the developer from Ease Soar, a unit of GCL-Poly Energy Holdings Ltd., according to a Jan. 18 filing with the Hong Kong stock exchange, sent after the market closed. As part of the deal, Ease Soar will get a 13 percent stake in the solar-cell maker, making it Goldpoly’s second-largest owner. GCL-Poly is the world’s biggest polysilicon producer.

Goldpoly is following solar-panel producers such as First Solar Inc. and JinkoSolar Holding Co. in expanding into project development, using their products, as panel prices have declined 61 percent in the past two years hurting profit.

“China Merchants only works downstream, where profit margins for developing solar farms are quite good,” Lian Rui, a Beijing-based analyst at research company NPD Solarbuzz, said by phone today. “In west China, the margin ranges from 10 percent to 15 percent.”

To contact the reporter on this story: Feifei Shen in Beijing at

To contact the editor responsible for this story: Reed Landberg at