On April 3, GCL Technology (03800.HK) issued an update on the development of its polycrystalline silicon material (granular silicon) business. The announcement stated that the company's indirect wholly-owned subsidiary Jiangsu Zhongneng Silicon Technology Development Co., Ltd. has recently served as a seller with Longi Green Energy Technology Co., Ltd. (stock code: 601012), as the buyer, has entered into a long-term purchase contract for the purchase of polycrystalline silicon materials (granular silicon).

According to the procurement contract, as of the end of 2026, Jiangsu Zhongneng and/or its affiliates agreed to sell, and LONGi Green Energy and/or its affiliates agreed to purchase a total of approximately 425,000 tons of polycrystalline silicon material (granular silicon).

Specifically, (i) during 2024, a total of approximately 125,000 tons of polycrystalline silicon material (granular silicon) will be purchased; (ii) during 2025, a total of approximately 150,000 tons of polycrystalline silicon material (granular silicon) will be purchased; and (iii) During 2026, a total of approximately 150,000 tons of polycrystalline silicon material (granular silicon) will be purchased. The actual purchase volume is allowed to fluctuate by 10% (determined by LONGi Green Energy). LONGi Green Energy and/or its affiliates will place monthly purchase orders for polycrystalline silicon materials (granular silicon) based on their respective needs, and the prices of these orders will be negotiated between the seller and the buyer based on current market conditions.

The GCL Board of Directors believes that the procurement contract will help promote the stable sales of polysilicon and granular silicon products in the company's daily business, promote the widespread application of products and the rapid increase in market share, and is consistent with the group's development strategy, which can further enhance the group's position in the new energy industry.