Hanergy Solar: Successful Launch of Solar Module Fab 2.0 Production Lines Upgrade Program

Customers’ Modules Manufacturing Costs Further Reduced Significantly Improved Gross Profit Margin on Turnkey Line Business

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[10 June 2013-Hong Kong] Hanergy Solar Group Limited (“Hanergy Solar” or “the Company”, together with its subsidiaries, “the Group”; stock code: 566.HK) is pleased to announce that the Group has achieved a further technology breakthrough to provide an upgraded enhancement solution for the tandem silicon-germanium production lines under its Fab 2.0 Production Lines Upgrade Program and has upgraded the new packaging equipment and technology. The success of Fab 2.0 Program resulted in a significant increase in the Group’s gross profit margin and a decrease in the total manufacturing costs per watt for our customers. The upgraded packaging technology has significantly enhanced the reliability and the useful life of solar modules. Both upgrades will largely strengthen the competitiveness of its customers’ production lines.

Technology Breakthrough Brings Capacity Improvement for Solar Modules

Expected Substantial Increase in the Group’s Gross Profit Margin

The Fab 2.0 Program provides upgraded enhancement solutions for silicon-germanium production lines. Thanks to the endless efforts of Hanergy Solar’s R&D team, the Group has achieved a significant technology breakthrough in the plasma enhanced chemical vapour deposition (the “PECVD”) manufacturing process and in the integration and upgrade in technology and equipment of turnkey production lines. These have significantly enhanced the conversion efficiency of solar modules, the output speed of the production lines and the production capacity of our customers. Together with the introduction of certain advanced automated operating processes, the total manufacturing costs per watt of its customers could be substantially decreased by approximately 9.34%.

In addition, the output of the turnkey lines could be increased by 50% while the units of PECVD used remain the same, driving the further increase in the Group’s gross profit margin of turnkey production lines. The Fab 2.0 Program mainly includes:

1) The upgraded deposition manufacturing processes have enhanced the conversion efficiency of solar modules. Hanergy Solar has an industry-leading manufacturing process and technology R&D team. The R&D team is committed to improving the conversion efficiency of solar modules manufactured by its production lines, and lowering manufacturing costs of solar modules. The R&D team has emphasised on optimising the core PECVD manufacturing processes such that the conversion efficiency is significantly increased based on the original process. The usage of key gases for each solar module decreases, significantly reducing the direct material costs.

2) Integrated and upgraded technology and equipment of turnkey production lines have enhanced the output capacity. The significant breakthrough in production line technologies has enabled the output quantity per unit time to increase significantly, with the output capacity enhanced by approximately 61.8%. In addition, certain processes have been upgraded to automation from manual operations, effectively reducing the manpower costs of the production lines.

Upgraded Packaging Technology, Significantly Enhancing the Reliability and the Useful Life of the Solar Modules

The highly competitive solar industry has resulted in stricter requirements on the reliability and the useful life of solar modules. Hanergy Solar R&D team has thus developed the upgraded packaging technology and equipment which significantly improves the reliability and accuracy of modules packaging. Test results indicated that solar modules adopting the upgraded packaging technology could bear 85ºC high temperature and 85% humidity environment (the “Dual 85 test”) for over 6,000 hours, far more than the standard 1,000 hours as required by the IEC 61646.

According to a recent report issued by an authoritative research institute, Lux Research, China will exceed Germany and become the leader of photovoltaic (“PV”) power generation market in 2018. The scale of solar power industry is expected to increase from USD93 billion in 2012 to USD155 billion in 2018. Given the promising industry trend, Mr. Frank Mingfang Dai, the Chairman and Chief Executive Officer of Hanergy Solar, commented “the success of Fab 2.0 Program and upgraded packaging technology are great breakthroughs of Hanergy Solar, and also significant contributions to the rapid development of thin-film PV industry. Although the PV industry in China is facing anti-dumping pressure imposed by the European Union, targeted on monocrystalline silicon and polycrystalline silicon, we concentrate on thin-film PV market and are therefore not affected. We believe that with the constant upgrade of thin-film solar technologies, thin-film solar products will enjoy greater market competitiveness due to its cost-effectiveness. We will continue to develop technology-leading cost-competitive solar modules manufacturing equipment and solutions, provide the world with clean, safe and sustainable thin-film solar technologies in the most efficient and cost-effective manner, so as to better assist our customers to compete in such a competitive PV market.”

About Hanergy Solar Group Limited

Hanergy Solar Group Limited (formerly known as "Apollo Solar Energy Technology Holdings Limited") offers field proven integrated solutions for large-scale thin-film solar modules production systems. Hanergy Solar is a world-class provider of thin-film solar modules production equipment and integrated solutions. Hanergy Solar is actively seeking investment opportunities in downstream solar projects, and moving towards the global photovoltaic power generation and applications market. The company was listed on the Main Board of the Stock Exchange of Hong Kong on 19th January, 1996, and the company name was officially changed to Hanergy Solar Group Limited on 14th January, 2013.

The press release is distributed by Wonderful Sky Financial Group on behalf of Hanergy Solar Group Limited.

For more information, please contact:

Wonderful Sky Financial Group Limited

Olive Zhang / Amy Xiao / Angus Song

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Email: olivezhang@wsfg.hk / amyxiao@wsfg.hk / angussong@wsfg.hk