QSL Commits to 2nd Large Scale Factory QSolar limited
FOR IMMEDIATE RELEASE
QSOLAR LIMITED COMMITS TO SECOND LARGE SCALE FACTORY IN ZHOUSHAN, CHINA AND PROVIDES UPDATE ON CHINAACTIVITIES, FILES PATENTS
Calgary, Alberta, Canada – May 23, 2013 (CNSX:QSL) – QSolar Limited (“QSolar” or the “Corporation”) is pleased to announce that further to a news release dated March 13, 2013, QSolar (Shanghai) Photovoltaic Technology Co. Ltd. (“QSolar (Shanghai)”) has committed to the commencement of registration of a new 100% owned Chinese subsidiary to be established in Zhoushan City, Zhejiang, China for the purpose of leasing a new 160,000 square foot photovoltaic (“PV”) solar panel manufacturing facility capable of manufacturing panels with total output of up to an estimated 500 megawatts per year. This second large scale factory was chosen in the Zhoushan economic zone by QSolar and assisted by Mr. JunLiang Xie, the controlling shareholder of QSolar’s largest shareholder, Centrium Enterprises Limited (“Centrium”). QSolar is also awaiting name approval of the newly formed subsidiary, anticipated to be named QSolar (Zhoushan) Photovoltaic Technology Co. Ltd. which will hold the Zhoushan factory operating assets. The existing QSolar (Shanghai) manufacturing facility is capable of manufacturing panels with total output of up to 50 megawatts per year without facility capacity constraints.
Construction at the Zhoushan site is underway, and QSolar is preparing the design drawings for Centrium to submit on its behalf to the Zhoushan economic zone authorities for design approvals. It is anticipated that construction will be completed in the third or fourth quarter and installation of QSolar’s proprietary designed equipment will also commence during the same period with sales commencing in 2013 from this factory into Zhoushan and other domestic China markets. Full scale ramp-up is anticipated in 2014. It is also anticipated that new factory workers for the Zhoushan facility will be hired from local government hiring agencies and trained by QSolar (Shanghai) personnel commencing in these periods while manufacturing start-up commences.
China Activities
Significant sales orders have been placed with QSolar (Shanghai) during the month of May by some existing distributors and new customers that visited the Shanghai manufacturing facility. As a consequence of the facility visits to inspect a newly introduced product, QSS, and in addition, in some cases, visits to a newly constructed QSolar pilot project in Zhoushan described below, have resulted in approximately 25 megawatts of orders being placed for QSS to date. The May orders of QSS represent the entire original internal sales quantity projections by management for 2013. It is anticipated that all the QSS orders will be manufactured in the QSolar (Shanghai) manufacturing facility as production scheduling and arrangements are being worked out with all customers. QSS production has now commenced.
QSolar Ltd. has filed a new patent for the new manufactured product introduced as QSS and its associated process utilizing QSolar Spraytek technology. This low cost PV solar panel with a solid light weight substrate has been produced and designed for commercial and EPC (“Engineering, Procurement and Construction”) companies and especially suitable for large on and off-grid solar farm projects. With this innovative product, QSolar will mainly focus on the manufacturing of QLiteX (“QLX”), a super light-weight hollow or vented substrate designed for strength and cooling of the solar panel and its new lower cost QSS, a solid light-weight solar panel.
As described above, prior to the commitment to locate a second large scale 500 megawatt factory in Zhoushan City, and in conjunction with the introduction of QSS, QSolar (Shanghai) commenced in late April 2013, the construction of a PV solar panel pilot project on a natural gas plant facility and site owned and controlled by Mr. JunLiang Xie in Zhoushan City. This QSolar pilot project is and will be show-casing all of QSolar’s PV solar panels on the administrative building façade, walkways and ground mount installation. It is anticipated that that construction of the pilot project will be completed by the about end of May 2013 as the site is being initially prepared and presented to local government officials. All of QSolar’s products at the pilot site in Zhoushan will also be show-cased at the InterSolar Global Exhibition in Munch, Germany, June 19-21, 2013, including:
QSS – a PV solar panel with a solid light weight substrate
QLX – a PV solar panel with a hollow super light-weight substrate
And two additional new PV products and processes for which new patents have been filed by QSolar Ltd.:
QSF – a PV solar panel with an ultra-super light-weight and ultra-thin flexible substrate
QST – a PV solar panel with light-weight transparent or “light letting” substrate
The Intersolar Global Exhibition announced QLiteX, a super light innovative solar panel manufactured on a proprietary “hollow” substrate, has been selected as one of up ten finalists for the 6th Intersolar Award 2013 for innovation for the international solar industry in the PV category.
On April 26, 2013, QSolar (Shanghai) received confirmation that QSolar (Shanghai)’s total registered capital of USD $1,000,000 has been verified by Chinese authorities in accordance with the Laws of the Peoples Republic of China Foreign Enterprises and other relevant regulations, through the Bank of China. QSolar Shanghai is structured as a wholly-owned limited liability subsidiary of QSolar Ltd., which is, in turn, a wholly owned subsidiary of the Corporation. QSolar (Shanghai) was structured as Wholly Foreign Owned Enterprise (WFOE”) and enjoys may benefits and privileges operating in China, including the ability to have a RMB dominated bank account for local purchases, import and export license, participate in value added tax credits of 17% on all domestic purchases and applications for 17% purchase rebates on building and shipping international sales, all subject to regulated documentation. The entity’s broad business scope allows it to engage in producing, manufacturing and assembling solar panels or PV modules and accessories and the sale and exporting of those self-manufactured products. The total registered capital of QSolar (Shanghai) had been established at USD $1,000,000 with all registered capital to be contributed in full within two years of the business license having been issued to QSolar (Shanghai). The contribution was completed well in advance to the government imposed deadlines.
QSolar trades under the symbol QSL on the Canadian National Stock Exchange (“CNSX”).