North Coast Solar Stocks

November 25, 2009

Hoku Announces Amendment to Contract With Jinko

Filed under: HOKU — Tags: , , , , — Jason @ 4:15 pm

4:15 pm EST, Wednesday November 25, 2009

HONOLULU, HI and JIANGXI, CHINA–(Marketwire – 11/25/09) – Hoku Materials, Inc., a wholly owned subsidiary of Hoku Scientific, Inc. (HOKU) established to manufacture and sell polysilicon for the solar market, and Jinko Solar Co., Ltd. (Jinko), formerly named Jiangxi Jinko Solar Co., Ltd., a vertically-integrated manufacturer of silicon ingots, silicon wafers, solar cells and solar modules in China, today announced the amendment of the polysilicon supply agreement in effect between the two companies.

According to the terms of the amendment, both companies have agreed to reduce the term of the sales agreement by one year, and to delay the first shipment date from December 2009 to December 2010. This will result in a ten percent reduction of the total volume of polysilicon to be sold by Hoku to Jinko. The pricing and other commercial terms of shipment for the remaining nine years remain unchanged.

“This amendment provides clear benefits to both parties by adjusting our agreement to account for the financing-related delays experienced by Hoku during the past year and the realities of the polysilicon market today,” said Dustin Shindo, chairman and chief executive officer of Hoku Scientific. “Jinko maintains its long-term pricing hedge and supply stability, and Hoku will enjoy some additional flexibility during our first year of production, the year in which our production cost per kilogram of polysilicon is expected to be the highest. We look forward to beginning our regular deliveries of polysilicon to Jinko in 2010.”

“This amendment shows Hoku’s continued commitment to its partnership with Jinko,” said Xiande Li, Chairman of Jinko Solar. “We look forward to receiving polysilicon from Hoku’s Pocatello plant in 2010.”

Hoku reported that Tianwei New Energy Holdings, Hoku’s prospective majority investor, had consented to the amendment.

About Jinko Solar Co., Ltd.

Jinko Solar Co., Ltd. is a large vertically-integrated solar product manufacturer based in China. Specializing in the production of silicon ingots, silicon wafers, solar cells and solar modules, Jinko’s silicon industry assets currently include monocrystalline furnaces, multicrystalline furnaces, wire saws, wire squarers, solar cell and solar module production lines, and related production facilities, among others. Jinko is an overseas funded, high technology enterprise wholly owned by JinkoSolar Holding Co., Ltd., a company incorporated in the Cayman Islands.

For more information, visit http://www.jinkosolar.com.

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