GCL Tech Officially Cease to Hold Equity Interest in Xinjiang Goens

Committed to Transformation of Embracing the Granular Silicon Technology 

On April 7, 2024, learning from the Chinese National Industrial and Commercial Information Registration System, the reporter found that the transfer of equity owners’ registration of Xinjiang Goens Energy Technology Co., Ltd. ("Xinjiang Goens") has officially completed, marking GCL Technology Holdings Limited ("GCL Tech", 3800.HK) has completed the final procedure of Xinjiang Goens’ equity disposal.  

In 2021, GCL Tech announced that its cutting-edge technology - the Fluidized Bed Reactor (FBR) granular silicon production has achieved a significant technological breakthrough, which enabled the Company to successively establish massive commercial manufacturing bases with an average capacity of 100K MT in Xuzhou (Jiangsu province), Leshan (Sichuan province), Baotou and Hohhot (Inner Mongolia province), respectively. GCL Tech also publicly addressed many times its strategy of gradually phasing out the Siemens rod silicon production capacity.  According to the public record, Jiangsu Zhongneng Polysilicon Technology Development Co., Ltd. ("Jiangsu Zhongneng"), a wholly-owned subsidiary of GCL Tech, completely shut down its Siemens rod silicon production capacity in Xuzhou, Jiangsu in June 2023, shifting the Company’s entire focus to the R&D and production of FBR granular silicon.

As an associated company of GCL Tech, Xinjiang Goens (formerly known as Xinjiang GCL New Energy Material Technology Co., Ltd.) was established in 2016. On December 29, 2023, GCL Tech made a public statement to announce that Jiangsu Zhongneng had disposed of its equity interest in Xinjiang Goens.  The most recent public record from the Chinese National Industrial and Commercial Information Registration System evidenced the completion of the transfer of equity owners’ registration of Xinjiang Goens, which reaffirmed GCL Tech’s strategy of completely phasing out Siemens rod silicon production capacity.  Positioning well as the polysilicon industry leader, GCL Tech has demonstrated its determination and confidence in fully embracing the FBR granular silicon technology. Recently, the steady increase in the FBR granular silicon’s utilization adoption rate (verifying from its various downstream customers), has strongly evidenced the excellent quality and superior low-cost of GCL Tech's granular silicon products; and these competitive edges have enabled GCL Tech to gain customer recognition persistently and obtain over 20% global market share. Indeed, these achievements indicate that GCL Tech's strategic transformation of focusing on FBR granular silicon has been successful.