C&D Inc Establish a Joint Venture with Clenergy

C&D Inc. (600153.SH) and Cleanergy(603628.SH) held a cooperation signing ceremony on 8th November 2021, the two sides will set up a joint venture company which engaged in solar power station investment and operation. The business coverage is mainly in Fujian Province and its surrounding provinces and cities. Under the joint venture agreement, C&D Inc. will hold 80% and Qingyuan 20%. Yongda Zheng, the chairman and Party Secretary of C&D Inc., Hong Wei, the chairman of Clenergy, and other relevant leaders of both parties attended the signing ceremony.

C&D Inc Establish a Joint Venture with Clenergy

C&D Inc Establish a Joint Venture with Clenergy

Distributed Solar Develop Quickly, Joint Venture Company Has Prosperous Prospects.
Under the background of “carbon peak” and “carbon neutral”, clean energy transition and green recovery have become a trend. The global photovoltaic market is growing rapidly. It is estimated that during the “14th Five-Year Plan” period, the global newly increased PV capacity will be about 163-266GW annually. At present, the development main point of PV power station in China is gradually shifting from the traditional centralized solar power station to distributed solar power station, which is integrated with the construction, transportation and other fields and superimposed on the application scale of residential building. It is expected that the proportion of distributed photovoltaic power station will continue to increase and become the mainstream of future development.

After PV industry entered the era of grid parity, central and state-owned enterprises accelerated into the PV industry, the new pattern of distributed PV investors is forming, and the market is growing and becoming increasingly mature. As the main battlefield for the joint venture in early development, By the end of 2020, the proportion of PV in the power generation structure in Fujian Province was only 0.1%, far lower than the proportion of the whole country (3.51%). With the decrease of the overall construction cost of solar power stations and the promotion of residential solar system policies in the whole county, solar power generation in Fujian province has a great space for improvement in the future.

Integrate Upstream and Downstream Industrial Chain Resources, Achieve Mutual Complementarity in The Interest of Our Common Development
As one of the China’s leading supply chain operating service companies, C&D shares with the mature “LIFT” supply chain service system and C&D brand effect, and get through the clean energy supply chain upstream and downstream nodes. C&D has established cooperation relations with several PV industry leading players, to solve the pain points and optimize the circulation efficiency, assisting for a healthy and rapid development of photovoltaic industry.

Clenergy is a unique A-share main board listed solar company in Fujian Province. With the mission of “science change the energy structure, help achieve carbon neutrality”, Clenergy has been deeply engaged in the new energy industry for 14 years and has rich experience and advantages in the whole industry chain of solar project development, design, construction and operation. Clenergy is the first company to launch and implement distributed PV+ digital energy management solutions in Fujian and Guangdong. After the establishment of the joint venture, Clenergy will provide design, construction, operation and maintenance services for C&D Inc. for industrial chain and county-level distributed PV projects in Fujian Province. The joint venture company will take the investment and operation of distributed photovoltaic power stations as its main business, taking Fujian province as the pioneer and base camp, and gradually expand the business outside Fujian province, strive to participate in carbon emission trading in the future for further profitability improvement.

After the establishment of the joint venture company, Mr. Michael K. Lee, the general manager of C&D Clean Energy will be the general manager of the joint venture company and participate in the management and operation. C&D Clean Energy, a renewable energy supply chain service provider, affiliated to C&D Inc., the member company of C&D Group, a Fortune Global 500 enterprise. Main business field of C&D Clean Energy focuses on high-quality new energy products supply, clean power assets investment, development, construction and operation, and supply chain & industry chain integration value-added service.

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