On July 22, GeLongHui announced that it plans to sign a cooperation agreement on distributed rooftop photovoltaic projects with its affiliate, Jiangsu Suomei Energy Technology Co., Ltd. Shangsheng Electronics will provide the roof of the factory building, and Suomei Energy will be responsible for constructing and operating the photovoltaic power generation system project. Shangsheng Electronics will settle with Suomei Energy according to a fixed discounted electricity price of 0.55 yuan/kWh. The project is expected to have a total installed capacity of 2.69MW (subject to actual installation). The agreement stipulated that the operating period of the project will be fifteen years from the date of obtaining the grid company's grid-connected acceptance opinion. The electricity generated by the project will be prioritized for Shangsheng Electronics' use and the excess electricity will be connected to the public grid. Suomei Energy will enjoy the electricity tariff income. Suomei Energy is responsible for project design, government permit or filing, equipment procurement, construction, operation, management and the associated expenses.
After the project is completed and put into operation, the company will prioritize the use of electricity generated by the project during the operating period of this agreement. According to the calculation, the annual average electricity generation of the photovoltaic system of this project is about 2.7736 million kWh. Settlement will be made at a fixed discounted electricity price of 0.55 yuan/kWh and with an expected absorption rate of 95%. The estimated annual electricity bill is approximately 1.4492 million yuan/year (the specific amount is settled according to the photovoltaic electricity settlement price and actual electricity consumption). The service period of the agreement is 15 years, and the expected photovoltaic electricity fee will be 21.7381 million yuan. Based on the company's average unit electricity price of 0.83 yuan/kWh in previous years, the project can save approximately 0.7378 million yuan/year in electricity bills, which amounts to a total savings of approximately 11.0667 million yuan over 15 years.