IDG-backed Chinese solar energy firm Gaojing rakes in $251m in Series A round

Photo by Nuno Marques on Unsplash

China’s Guangdong Gaojing Solar Energy Technology has raked in 1.6 billion yuan ($251.3 million) in a Series A round of financing to speed up the construction of photovoltaic (PV) silicon wafers production facilities.

Existing investors IDG Capital and Huafa Group, a state-owned group in southern China’s Zhuhai City, invested in the Series A round. New investors Guangdong Finance Fund Management, Shenzhen Investment Holdings, and China Life Investment Management, the alternative investment arm of Beijing-based China Life Insurance, participated in the deal.

Solar cells manufacturer Shanghai Aiko Solar Energy and Midea Capital, the investment unit of Chinese home appliances maker Midea Group, also injected capital into the round.

Gaojing was founded in July 2019 with the support of IDG Capital and Huafa Capital to focus on the R&D and manufacturing of high-efficiency, large-sized silicon wafers that leverage the PV technology to generate electricity when exposed to light.

The completion of the Series A round comes as Zhuhai-based Gaojing is planning to invest a total of 17 billion yuan ($2.7 billion) in the construction of facilities capable of producing 50 gigawatts of PV silicon wafers per year. At an annual production capacity of 50GWs, it estimates to help reduce 70 million tonne carbon emissions every year.

The firm already completed the first phase of the project with facilities currently delivering 15GWs of PV silicon wafers per year. The fresh capital is expected to accelerate the second phase that could complete and start – from June 2022 – producing another 15GWs of wafers annually. It targets to begin building the final-phase facilities later this year.

“IDG Capital has a strong belief that Gaojing will help promote the development of the PV industry and realise the adoption of larger-scale, lower-cost products. We will continue to invest in more quality companies as such and boost China’s goal to become carbon-neutral,” said IDG Capital’s partner Yu Xinhua in a company statement.

Gaojing is the latest startup in IDG Capital’s clean energy portfolio to raise new capital. In the clean energy sector, it focuses on segments including PV, electric vehicles (EVs), energy storage, smart power grids, and hydrogen energy with investments in EV brands Xpeng and Nio, EV battery maker SVOLT Energy Technology, and storage battery manufacturer Sunwoda Electronic, among others.

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