Aiko Solar boosts production with major equipment purchase from related party

Shanghai Aiko Solar Energy Co., Ltd. (Aiko Solar) has announced that its subsidiary, Shandong Aiko Solar Energy Technology Co., Ltd., signed an equipment procurement contract with Suzhou Purete Automation System Co., Ltd. The deal is for 15 sets (25 units) of photovoltaic cell wet process production equipment, totaling 55.08 million yuan (including tax). This is a related party transaction, as Aiko Solar's controlling shareholder, Chen Gang, also controls Suzhou Purete. The transaction requires shareholder approval because cumulative related party transactions over the past 12 months exceed 5% of the latest audited net assets.

This procurement supports Aiko Solar's strategy to upgrade its Jinan base to the latest generation ABC technology, aiming for higher conversion efficiency and lower production costs. Suzhou Purete has been a long-standing supplier with a strong track record in R&D and on-time delivery. The equipment pricing, based on production costs plus a target profit margin, has been confirmed as fair by an independent accounting firm.

In parallel, Aiko Solar is updating its corporate governance. This includes changes to its registered capital due to employee stock option exercises and a private stock placement, increasing total shares to 2,117,249,923. The company also plans to abolish its Supervisory Board, with its functions to be assumed by the Board's Audit Committee. Numerous internal policies, including those for external investment and external guarantees, are being revised or newly established to align with updated regulations and company needs, further strengthening internal controls.