Hanergy Thin Film Power Group Limited, a Hong Kong-listed company specializing in thin-film solar technology, announced on late Friday that it has entered into a sales and service contract with Macrolink New Resources Holding Company Limited.

According to this agreement, Hanery agrees to sell Macrolink New Resources certain production line equipment for Business Integrated Photovoltaic Business (BIPV) at a total capacity of 600MW with a total price of $198 million (approximately HK$1.54 billion), and to provide technical services with respect to this production line equipment for total service fee of $462 million. The move will bring the Group a considerable income of $660 million in total.

Meanwhile, the Group has entered into a subscription agreement in which the Group will allot and issue 1.5 billion new shares to Macrolink New Resources, which will represent approximately 3.48 percent of the enlarged issued share capital of the Group. The subscription price is HK$3.64 per subscription share and the net proceeds of the subscription will be approximately HK$5.460 billion, which is intended to be used for the general corporate and working capital of the Group and for future investment and development of the Company when opportunities arise.

Hanergy Thin Film Power indicated that the sales contract and service contract between the Group and Macrolink New Resources will bring considerable income to the Group and the subscription agreement will incentivize Macrolink New Resources to establish a long-term business relationship with and become a long-term partner of the Group.

Macrolink New Resources is principally engaged in the business of properties, mining, petroleum, chemical industry and finance with its annual operating income amounting to approximately RMB55 billion and its total asset value exceeding 50 billion yuan.