United PV Announces 2014 Annual Results

Profit Reaches HK$367 million

HONG KONG, March 24, 2015 /PRNewswire/ —

Financial Highlights

For the year ended 31 December (HK$’000)

2014

2013

Revenue (including tariff adjustment)

523,988

37,723

Profit/(loss) attributable to owners of the Company

366,616

(2,304,986)

Basic earnings/(loss) per share

HK$8.97 cents

(HK$137.94 cents)

United Photovoltaics Group Limited ("United PV" or the "Company", with its subsidiaries, collectively "The Group", stock code: 00686.HK, whose largest shareholder is China Merchants New Energy Group "CMNE"), a leading solar power plant investor and operator in China, today announced its annual results for the year ended 31 December 2014 (the "Year under Review").

During the Year under Review, profit attributable to the owners of the Company was approximately HK$367 million. Total revenue surged to approximately HK$524 million (2013: HK$38 million). The increase in profit of the Company was mainly attributable to the increase in generation volume of electricity of the solar plants acquired in 2013 by 262% to approximately 126,320 megawatt-hours for the year; and contribution from electricity generation by 6 solar power plants acquired during the year amounted to approximately 318,000 megawatt-hours. Basic earnings per share was approximately HK$8.97 cents (2013: loss of HK$137.94 cents).

Proactive Investment and Operation of Solar Power Plants

During the Year under Review, investment and operation of solar power plants continued to be the major business and main contributor to the Company. Revenue from sales of electricity (including tariff adjustment) amounted to approximately HK$479 million. The Company vigorously promoted the acquisitions of high-quality grid-connected power plants during the year; it completed acquisition of 6 established and grid-connected solar power plants located at Gonghe, Qinghai and Inner Mongolia. As of 31 December 2014, the Company and its associates beneficially owned 15 solar power plants with an aggregate installed capacity of 572MW. In addition to acquired projects, United PV, together with other large-scale state-owned enterprises and industry giants, also entered into framework agreements to build its project pipeline for the next five years.

Completed Disposal of Solar Cells Business

On 28 October 2014, the Company sold its solar silicon cell sales and manufacturing business, which was performing unsatisfactorily, at a consideration of HK$217 million. The disposal enabled the Company to devote its resources in investment and the operation of solar power plants which generate stable electricity income, and brought immediate cash flow to the Company.

Future Prospects

United PV continued to carry out financial innovations in 2014, including the issue of convertible bonds and finance leasing, to cooperate with well-established financing institutions, allowing the Company to not only diversify its financing channels to adjust its debt structure, but also achieve an organic combination of cross-border business and acquisitions. Moreover, by bringing their advantages into full play, United PV and other outstanding enterprises under China Merchants Group ("CMG") joined hands to develop and strengthen the Company’s solar power business.

The encouraging results in 2014 indicated the Company’s right direction of the proactive development on the new business of solar power plants. 2014 marks the important transformation of United PV in its history. Over the past year, the Company further optimized its shareholding structure; with shareholding increments of CMG, the Company is staunchly supported by its sister companies under CMG. In the coming year, upholding its philosophy of innovation, United PV will continue to broaden its financing platform to attract overseas funding and further promote photovoltaic internet finance. In respect of maintenance and operations, the Company will further optimize its smart management system for solar power plants to raise power generation efficiency.

China’s leadership stated clearly in their Report on the Work of the Government during the National People’s Congress and the National Committee of the Chinese People’s Political Consultative Conference that the government is committed to developing energy saving and environmental protection industries to sunrise industries with opportunities, and laying emphasis on the development of solar power generation. In addition, at the 2015 Climate Change Conference held in Paris, France, numerous countries will sign a new climate agreement, which is legally binding on all parties, to ensure the continuous reduction of emissions after 2020. In addition, the whole world has been proactively taking green actions for energy saving and environmental protection. As a professional new energy platform of CMG, a century-old national enterprise, United PV will spare no efforts in promoting green energy to millions of families and welcoming the era of new energy.

About United Photovoltaics Group Limited (stock code: 00686.HK)

United Photovoltaics Group Limited, whose largest shareholder is China Merchants New Energy Group, is a leading photovoltaic power plant investor and operator in China. The Company has actively carried out a series of mergers and acquisitions by leveraging strong connections with SOEs and leading conglomerates to consolidate resources in the solar power industry. The Company is committed to becoming China’s most efficient and professional operational platform for photovoltaic power plants as well as to establishing a healthy photovoltaic green ecosystem. For more information about United Photovoltaics Group Limited, please visit: http://www.unitedpvgroup.com