GCL-Poly Energy Holdings Ltd., the Hong Kong-based maker of polysilicon and wafers used to make solar cells, plans to sell its non-solar power business for 3.2 billion yuan ($503 million). Its shares rose.
The sale to Jiangsu Golden Concord Energy Co., announced in a regulatory filing Monday, includes all of GCL-Poly’s interest in its subsidiaries not involved in the development or production of solar products. After the sale, GCL-Poly will focus on making polysilicon and wafer products, as well as developing, owning and operating solar farms, it said.
Assets being sold include 17 cogeneration power plants, two incineration power plants and a wind power plant in China. GCL-Poly’s solar business accounted for about 68 percent of its revenue in the year ended Dec. 31, according to Bloomberg data.
GCL-Poly’s shares rose 6 percent as of 2:46 p.m. in Hong Kong trading. They earlier gained as much as 6.8 percent, which would be the biggest one-day gain since Aug. 27.
Last month, GCL-Poly said first-half profit fell as a supply glut pressured product prices. Net income in the six months through June was HK$825.7 million ($106.5 million), down from HK$900.4 million a year earlier.
— With assistance by Yi Zhu