Shuifa Industrial Energy (00750) expects the 35 MW capacity reconstruction project in Liupanshui to be completed in September 2026

According to the Zhitong Finance App, Shuifa Industrial Energy (00750) issued an announcement. In order to keep the actual capacity of the Liupanshui project consistent with the approved registered capacity, the target company is reconstructing (rebuilding) the 35 megawatt Liupanshui project. The reconstruction is expected to be completed in September 2026.

The Group has previously selected a number of plots for redevelopment. Due to issues related to local land resource management (the company learned about around the end of May 2026), the target company was only allocated land plots located in Zuojiaying, Wujiazhai and Xinhua Village, with a total area of 287 acres for reconstruction.

After taking into account (i) the reduction in total land area; (ii) the two plots in Wujiazhai and Xinhua Village (which have a smaller land area and are far from the existing core plot) will be rebuilt separately, which will drive up construction and maintenance costs and affect the overall efficiency of the Liupanshui project; (iii) land lease costs; and (iv) the proposed reconstruction schedule, the target company formulated a new redevelopment plan (new redevelopment plan) after making a thorough assessment (including field survey, technical analysis and comparative study of the various plans). According to the new redevelopment plan, the target company plans to (i) use a plot of land in Zuojiaying with an area of 111 acres (new land) for the construction of 660 Wp high-efficiency photovoltaic modules and equipment (updated and reconstructed); and (ii) carry out technical modifications and upgrades of existing 65 MW photovoltaic modules and equipment, and replace some of the existing 255 Wp inefficient photovoltaic modules and equipment with new 660Wp high-efficiency photovoltaic modules and equipment (technical transformation). Through the new reconstruction plan to improve efficiency and optimize equipment parameters, the total capacity of the Liupanshui project will be restored to 100 megawatts after the completion of the new reconstruction plan. According to the national electricity price verification policy relating to renewable energy, and taking into account that (i) the final capacity of the Liupanshui project remains at 100 megawatts; (ii) the investment entity has not changed; and (iii) the grid connection time and electricity price verification standards remain unchanged; it is expected that the changes in the reconstruction plan will not have a significant impact on the national electricity price verification.

According to the budget of the new reconstruction plan, the estimated cost of reconstruction is approximately RMB 49.97 million, an increase of approximately RMB 29.97 million. At the same time, with reference to the remaining usable period of 14.75 years (from completion of reconstruction in September 2026 until 2041), the new redevelopment plan will have the following effects: (i) total rental expenses are expected to be reduced by approximately RMB 4.28 million due to reduced land area; (ii) various one-time government application and approval fees and various land supplementary expenses will be reduced by approximately RMB 5.5 million; and (iii) total revenue from electricity sales will increase by approximately RMB 71.05 million due to improved efficiency. In view of the above, the Company believes that compared to the original plan, the new reconstruction plan provides a practical alternative solution for reconstruction and is generally more beneficial to the Group.