On December 20, * ST Mubang announced that the company and its holding subsidiary, Guangxi Mubang Hi-Tech New Energy Co., Ltd. (Hereinafter referred to as "Guangxi Mubang"), were asked to return the financial subsidies and support funds they had received.
Previously, on July 20, 2022, * ST Mubang and Wuzhou Municipal People's Government signed the "10GW TOPCO N Photovoltaic Cell Production Base Project Investment Contract". Subsequently, a supplementary contract and a financial support agreement were signed on December 19, 2023. Accordingly, the Wuzhou Municipal People's Government allocated 270 million yuan of financial subsidies and 240 million yuan of project construction support to * ST Mubang, totaling 510 million yuan . On July 1 this year, the Wuzhou Municipal People's Government ordered * ST Mubang and its related subsidiaries to return the financial subsidies and support funds they had received and assume the corresponding liability for breach of contract
because the above-mentioned 10g W battery project had not been put into operation according to the agreed schedule for a long time. According to
the data, the total investment of * ST Mubang's 10GW battery project is 5.2 billion yuan, the project unit is Mubang, Guangxi, and the construction site is located in the high-tech zone of Guangdong-Guangxi Cooperation Special Experimental Zone (Wuzhou). The project involves the construction of about 100,000 square meters of clean plant and supporting buildings, 20 production lines of photovoltaic cells, etc ., mainly engaged in the production of TOPCON photovoltaic cells, with an annual production capacity of about 10GW. The signing and commencement ceremony of the project was held on July 20, 2022.
According to the announcement of Wuzhou Administrative Examination and Approval Bureau in February 2023, the project is scheduled to be put into operation in December 2023. However, on March 23, 2024, * ST Mubang issued a notice saying: "The civil work is affected by many factors and has not yet been completed, but 90% has been completed." "According to the project commencement order, the project started on November 27, 2022, and was originally planned to be put into operation on March 30, 2023. At present, it has not been put into operation according to the original plan."
Finally, through the communication between the company and the Wuzhou Municipal Government, the two sides agreed to extend the production period appropriately, and it is expected to be put into operation by the end of September 2024. On April 30,
2024, the project announced that the first film was offline. Two months later, on June 12, 2024, the Management Committee of the Guangdong-Guangxi Cooperation Special Experimental Zone (Wuzhou) issued a notice that the full commissioning time of the above-mentioned projects was changed to October 30 , 2024. The production time of the
project has been delayed repeatedly, and ultimately failed to achieve production as scheduled. According to the semi-annual report of * ST Mubang 2025, the current progress of the project is only 45.9% .
According to the previous agreement signed by * ST Mubang and Wuzhou Municipal People's Government, Party a (referring to Wuzhou Municipal People's Government) has the right to cancel the contract and request * ST Mubang and related companies to return the support funds and subsidies they have received, and to buy back according to the actual investment of Party a and its affiliated companies. Party B shall pay liquidated damages at 10% of Party A's actual input.
According to the latest announcement on December 20, the Wuzhou Municipal People's Government has organized a hearing on August 21. At present, the final administrative treatment has not yet been made.
In addition, on July 28, 2025, in order to further promote the implementation of the project, * ST Mubang signed an agreement with the Wuzhou Municipal People's Government, stipulating that * ST Mubang should deposit the first fund of 150 million yuan into the special account for project funds by August 4, 2025.
On November 14, the company received a notice from the Management Committee of the Guangdong-Guangxi Cooperation Special Experimental Zone (Wuzhou) requesting it to pay 150 million yuan as soon as possible. The liquidated damages of RMB13.65 million shall be paid as agreed , and the subsequent liquidated damages shall continue to be calculated.
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