BAODING, China, March 27 /PRNewswire-Asia/ -- Yingli Green Energy Holding Company Limited (NYSE: YGE) ("Yingli Green Energy" or the "Company"), one of the world's leading vertically integrated photovoltaic ("PV") product manufacturers, today announced that Baoding Yingli Group Company Limited ("Yingli Group"), an affiliate of the Company, has entered into a strategic cooperation agreement with the Hebei Branch of Bank of China, which contemplates potential credit facilities in the aggregate maximum amount of RMB 6 billion to be granted to entities affiliated with Yingli Group, including three PRC subsidiaries of Yingli Green Energy.
Under the terms of the strategic cooperation agreement, subject to internal procedures to be conducted in accordance with its risk management and operational regulations, the Hebei Branch of Bank of China expects to grant, among other credit facilities, (i) credit facilities with an aggregate maximum amount of RMB 2 billion to Baoding Tianwei Yingli New Energy Resources Co., Ltd., a 74%-owned subsidiary of Yingli Green Energy, (ii) credit facilities with an aggregate maximum amount of RMB 1.5 billion to Yingli Energy (China) Co., Ltd., a wholly owned subsidiary of Yingli Green Energy, and (iii) credit facilities with an aggregate maximum amount of RMB 1.8 billion to Fine Silicon Co., Ltd., a wholly owned subsidiary of Yingli Green Energy. In addition to the internal procedures to be conducted by the Hebei Branch of Bank of China, each of the three PRC subsidiaries of Yingli Green Energy will need to negotiate the detailed terms of the credit facilities and related credit agreements before the relevant credit facilities may be granted. Therefore, no assurance can be given that the credit facilities will be eventually granted to these PRC subsidiaries of Yingli Green Energy as currently contemplated in the strategic cooperation agreement or at all.
"We are pleased that Yingli Group has entered into this strategic cooperation agreement, which we believe will benefit us in helping us secure additional credit facilities, thereby providing us additional financial resources to expand our PV production capacity, commence our polysilicon production and further strengthen our capital position as well as providing us with additional flexibility in business and financial planning," commented Mr. Zongwei Li, Chief Financial Officer of Yingli Green Energy. "In order to maintain cash flow flexibility in this challenging economic environment, we will continue to actively source long- and short-term financings both domestically and internationally."
About Yingli Green Energy
Yingli Green Energy Holding Company Limited is one of the world's leading vertically integrated PV product manufacturers. Through Baoding Tianwei Yingli New Energy Resources Co., Ltd., an operating subsidiary of the Company, Yingli Green Energy designs, manufactures and sells PV modules and designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or operate on a stand-alone basis. With 400 MW of total annual production capacity in each of polysilicon ingots and wafers, PV cells and PV modules, Yingli Green Energy is currently one of the largest manufacturers of PV products in the world as measured by annual production capacity. Additionally, Yingli Green Energy is one of a limited number of large-scale PV companies in the world to have adopted a vertically integrated business model. Through its wholly owned subsidiary, Yingli Energy (China) Co., Ltd., Yingli Green Energy currently plans to expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 600 MW in the third quarter of 2009. The Company, through Fine Silicon Co., Ltd., its wholly owned subsidiary, also plans to begin production of solar-grade polysilicon in the second half of 2009. Yingli Green Energy sells PV modules under its own brand name, Yingli Solar, to PV system integrators and distributors located in various markets around the world, including Germany, Spain, Italy, South Korea, Belgium, France, China and the United States. For more information, please visit http://www.yinglisolar.com .
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Yingli Green Energy's control, which may cause Yingli Green Energy's actual results, performance or achievements to differ materially from those in the
forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in Yingli Green Energy's filings with the U.S. Securities and Exchange Commission. Yingli Green Energy does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.