Solargiga Announces 2011 Interim Results

Turnover increased by 60% to RMB1,274.1 million

Profit attributable to equity shareholders of the Company increased by 174% to RMB112.8 million

Continuous capacity expansion to achieve economic of scale

Securing orders from long-term customers and stabilising income sources

HONG KONG, Sept. 1, 2011 /PRNewswire-Asia/ --

Financial Highlights

China's leading monocrystalline silicon solar ingots and wafers manufacturer, Solargiga Energy Holdings Limited ("Solargiga" or the "Company", HKSE Stock Code: 757, Taiwan Depositary Receipts: 9157TT, and its subsidiaries, the "Group"), today announced its interim results for the six months ended 30 June 2011 ("Reporting Period").

During the Reporting Period, the economy of China remained stable. However, the solar energy market has become more volatile in comparison to the previous year and there has been adjustment to demand. Despite the market fluctuation, the Group has continued to secure orders from customers by virtue of its quality products and technologies. During the Reporting Period, the turnover of the Group reached RMB1,274.1 million, representing an increase of 60% over the corresponding period of the previous year. Gross profit substantially increased by 202% to RMB287.3 million. Profit attributable to equity shareholders of the Company increased significantly by 174% to RMB112.8 million. Earnings per share increased to RMB5.17 cents. The board of directors of Solargiga does not recommend the payment of an interim dividend for the six months ended 30 June 2011.

Mr. HSU You Yuan, CEO and Executive Director of Solargiga said, "After the nuclear plant crisis in Japan, countries around the world, including China, have re-examined their development plans for renewable energy. The Chinese government iterated the strategic importance of renewable energies under the 'Twelfth Five-Year Plan' During the Reporting Period, although the solar energy market was fluctuated, with the enlarged production scale and recognised product quality of the Company from long-term customers, the demand for products of the Company continued to increase and turnover continued to rise. As such, the Group continued to improve the quality and conversion efficiency of products. We have also adhered to our expansion plan on the high-efficiency monocrystalline products, capitalised on our advantages and further uplifted our production capacity in order to meet the huge amount of product shipment. As part of the plan, the Qinghai Plant was completed in August and will put into operation shortly thereafter, which will help the Group further consolidate its leading position in the market of the monocrystalline business."

As at 30 June 2011, the Group was equipped with 397 monocrystalline ingot pullers, 83 wiresaws, 4 multicrystalline casting furnaces, 8 production lines for solar cells and 4 production lines for the parts of photovoltaic modules, with the production capacity of silicon solar ingots, silicon solar wafers, photovoltaic cells and modules amounting to 800MW, 600MW, 300MW and 100MW, respectively. Notwithstanding the adjustment to the market demand for solar products, during the Reporting Period, the Group has endeavoured to maintain its relationship with long-term customers, who have shown their support to the planned new production capacities by placing purchase orders. During the Reporting Period, the total shipment volume of the Group's products amounted to approximately 217.67MW, representing an increase of 40% as compared to 155.15MW in the corresponding period last year.

During the Reporting Period, with the support of the shareholders, the Group successfully acquired the photovoltaic cell business on 26 January 2011. Since completing the acquisition, a portion of the silicon solar wafers manufactured were used in the production of solar cells before being sold. From the date of acquisition being 26 January 2011 to 30 June 2011, the production value of the external shipment volume of solar cells of and the internal volume of cells supplied to and required by module production was approximately RMB652.3 million, the volume of the cells, including external shipment volume and internal quantity supplied to and required by our module production, in which the profit has been realised, was approximately 90.43MW. It contributed a segment profit of approximately RMB29.8 million, representing a significant percentage of 26% to the profit of the Group of RMB113.3 million.

Following a number of development projects undertaken in the recent years, the businesses of the Group including downstream solar cells, photovoltaic module and system installation have been gradually developed, thus successfully achieving vertically integration of the Group and further strengthening the leading position of the Group in the industry. As the downstream operations gradually develop, the Group has obtained a number of key orders in China, including the 20MW on-grid photovoltaic power plant project in Golmud, Qinghai Province which was secured at the beginning of July 2011. The construction of the on-grid photovoltaic power plant will be completed by the end of September this year. The construction of the 13.5MW "Golden Sun Programme" Project in Liaoning Province, which was previously awarded to the Group, is expected to be completed within this year. A photovoltaic system programme of 33.5MW in aggregate is projected to be completed by the end of this year. Moreover, Jinzhou Jinmao Photovoltaic Technology Company Limited ("Jinzhou Jinmao"), a subsidiary of the Company has become one of the suppliers of photovoltaic modules for the 250MW on-grid photovoltaic power plant of Huanghe Hydropower in Golmud, Qinghai Province and is expected to provide photovoltaic modules, in aggregate, of approximately 19MW to Huanghe Hydropower from the third quarter in 2011 onwards.

Looking ahead, the Group is striving to continue the capacity expansion plan. it is expected that by the end of 2011, the annual capacity of the silicon solar ingots of the Group will increase from 800MW currently to 1,400MW, including monocrystalline silicon ingots of 1,200MW and multicrystalline silicon ingots of 200MW, while the annual capacity of the silicon wafers will also rise from 600MW currently to 1,100MW, including monocrystalline silicon wafers of 900MW and multicrystalline silicon wafers of 200MW. In view of the fluctuated market, the original plan of the phase 2 multicrystalline silicon solar ingots and wafers to increase the capacity by 300 MW each in 2011 will be delayed to 2012. Besides, as vertical integration is the general business trend of the solar energy industry, the Group will, therefore, also continue to explore downstream module and the system power generation businesses. By the end of 2011, the annual capacity of cells and modules of the Group will reach 300MW and 150MW, respectively. The Group will continue to adopt the business model of vertical integration in an inverted pyramid structure with a focus on monocrystalline silicon solar ingots and wafers, so as to capture market opportunities.

Mr. HSU You Yuanconcluded, "According to the latest report, the Asia Pacific region will become a crucial solar energy market around the world. The total market demand for solar energy from Asia Pacific regions such as China, Japan, India, Australia and Korea are expected to reach 3.3GW in 2011. Subsidies are being granted to solar power generation projects in China enormous efforts are being spent to develop the solar energy industry. This will fully favour the solar energy industry as a whole. Although the demand of the market in the second quarter of this year was not keen, the quota for long-term orders of the Group has been fulfilled in 2011. This shows that there has been a strong demand for high-quality, high efficiency products since the second half of 2011. Being the leading enterprise engaged in solar energy business in China, we will endeavour to accelerate the future development of the Group through continuously strengthening the product quality, improving efficiency and expanding capacity. Meanwhile, the Group will proactively improve the operating efficiency of its own plants, in order to achieve economic of scale and in turn further enhance the competitive cost advantage, in order to strengthen our position as a leading monocrystalline silicon ingots and wafers manufacturer."

About Solargiga Energy Holdings Limited

Solargiga Energy Holdings Limited is a leading manufacturer of monocrystalline silicon solar ingots and wafers in the People's Republic of China ("PRC"). In addition to the offering of monocrystalline silicon solar ingots and wafers, the Group has extended into the manufacture of multicrystalline silicon solar ingots and wafers, the production and sales of solar cells and modules as well as the design and installation of photovoltaic systems. Currently, our annual monocrystalline silicon solar ingot production capacity amounted to approximately 800MW, annual monocrystalline silicon solar wafer production capacity is approximately 600MW, while the annual capacity of solar cells and modules are approximately 300MW and approximately 100MW, respectively. By the end of 2011, our annual monocrystalline silicon solar ingot production capacity amounted to approximately 1,200MW, annual monocrystalline silicon solar wafer production capacity is approximately 900MW, the annual capacity of the multicrystalline silicon solar ingots and wafers is 200MW each, while the annual capacity of solar cells and modules are approximately 300MW and approximately 150MW, respectively.

The Group operates its major production facilities of solar ingot and wafer in Jinzhou, Liaoning Province, the PRC. In addition, the Group operates polysilicon reclaiming and upgrading facilities in Shanghai and Jinzhou. Also, the first phase of the monocrystalline silicon solar ingot production line in Xining City, Qinghai Province, in which the Group owns 51% controlling interest, has been completed. Already a market leader in the PRC, the Group aspires to be the world's largest monocrystalline silicon solar ingot and wafer producer as well as one of the key players in multicrystalline silicon solar product business through rapid capacity expansion and technology upgrade. Since 2009, Solargiga has started to develop its downstream solar module and system installation businesses through the formation of joint venture company in Jinzhou as well as the acquisition of solar cell business in Jinzhou to realize vertical integration.

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