Sunpower wins RMB242 million M&S tender from repeat customer CHN Energy

2019-04-29 18:00 1543
  • Secured RMB365.5 million in aggregate value of contracts for Yulin Project since 2018
  • CHN Energy has been a longstanding repeat customer since 2006 and latest contract win signals its utmost confidence in Sunpower
  • This proves Sunpower's ability to supply superior high-quality equipment and solutions for large projects

SINGAPORE, April 29, 2019 /PRNewswire/ -- Mainboard-listed Sunpower Group Ltd. ("Sunpower" or the "Group") (SGX: 5GD.SI), an environmental protection solutions specialist with a leading edge in anti-pollution investment projects ("Green Investments" or "GI") that generate long-term intrinsic value in the form of recurring income and cash flows, has won a RMB242 million Manufacturing and Services ("M&S") tender from Shenhua Yulin Energy Chemical Co., Ltd. ("Shenhua Yulin"), a subsidiary of China Energy Investment Co., Ltd. ("CHN Energy").

As a Fortune Global 500 company and one of the world's largest power generation companies by capacity, CHN Energy is a longstanding repeat customer, having kicked off its partnership with Sunpower in 2006. Sunpower will provide a comprehensive range of services that includes the design, engineering, procurement and construction of a high salt crystalliser for the Yulin Recycling Economy Coal Comprehensive Utilisation Project ("Yulin Project"), one of the world's largest coal chemical projects. This will be the third M&S project undertaken by the Group for the Yulin Project, adding up to an aggregate of RMB365.5 million. This is expected to have a positive impact on the Group's performance for FY2019 and FY2020.

Mr. Guo Hongxin, Executive Chairman of Sunpower, said, "We are heartened to win another repeat contract from CHN Energy and provide solutions for the landmark Yulin Project again. Sunpower has established a solid track record in supplying high-quality equipment and solutions for large scale projects. CHN Energy's trust in us is also mirrored by the other reputable customers we have served over the years, including BASF, BP, Shell, CNOOC, CNPC and SINOPEC, which have contributed to the stable and resilient development of our M&S business segment."

He continued, "Our GI business however is the key value creator and growth driver of Sunpower's future, capable of generating long-term high quality recurring income and cash flows for us. Right now, we have 7 operating GI projects and 5 more on the way, either at the construction or design stages. In addition, we have a strong pipeline of projects under evaluation that will provide a springboard for us to further ramp up the GI business. We are on target to invest RMB 2.5 billion in equity by 2021 to build a sizeable portfolio of GI assets that will maximise its enormous potential."

None of the directors have interest in the aforesaid contract other than through their direct and indirect shareholdings.

About CHN Energy

The establishment of China Energy Investment Co., Ltd., also known as CHN Energy, was approved by the Central Committee of the Communist Party of China and the State Council. It was formed through the merger of the China Guodian Corporation and Shenhua Group Co., Ltd., both listed on the Fortune Global 500 List of largest corporations in the world by revenue. Registered on 28 November 2017, CHN Energy is among a set of key state-owned enterprises directly managed by the central government and among selected reform pilot enterprises under the state-owned capital investment company. In 2018, CHN Energy was ranked 101st on the Fortune Global 500 List. CHN Energy has eight production segments, including coal, thermal power, new energy, hydropower, transportation, chemicals, science and technology, and finance. It is the world's largest coal production company, thermal power generation company, wind power generation company and coal-to-liquid coal chemical company.

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About Sunpower Group Limited

Founded in 1997, Sunpower Group Ltd. (SGX: 5GD.SI) is an environmental protection solutions specialist in proprietary energy saving and clean power technologies, with a strong focus on expanding into anti-pollution investment projects ("Green Investments") which generate intrinsic value in the form of long-term, recurring and high-quality cash flows.

With proven capabilities in technology innovation and proprietary clean energy solutions, Sunpower is shaping a green future for itself by continuously developing its business segments of Green Investments ("GI") and Manufacturing & Services ("M&S"). Sunpower has rapidly expanded its GI business in recent years by leveraging on its existing core technologies of high-efficiency heat transfer, long distance heat insulated steam distribution, energy saving and ultra-low emission clean power generation. The GI segment is mainly focused on the investment and operation of centralised steam and electricity supply business, which is expected to bring in additional stream of recurring income to the Company.

In the M&S segment, Sunpower has delivered superior quality products and services to approximately 1,500 customers in over 30 countries across the globe to-date. Its reputable customer base includes BASF, BP, Shell, SABIC, DowDuPont, Alcoa and Mobil, China Petrochemical Corporation (SINOPEC), China National Petroleum Corporation (CNPC), China National Offshore Oil Corporation (CNOOC) and China Shenhua.

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Source: Sunpower Group Ltd.
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