GCL Poly Energy : VOLUNTARY ANNOUNCEMENT - BUSINESS UPDATE PROGRESS OF GRANULAR SILICON TECHNOLOGY

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

GCL-Poly Energy Holdings Limited 保 利 協 鑫 能 源 控 股 有 限 公 司

(Incorporated in Cayman Islands with limited liability)

(Stock code: 3800)

VOLUNTARY ANNOUNCEMENT

BUSINESS UPDATE

PROGRESS OF GRANULAR SILICON TECHNOLOGY

This announcement is made by the board of directors (the ''Board'') of GCL-Poly Energy Holdings Limited (the ''Company'') together with its subsidiaries (the ''Group'') on a voluntary basis to keep the shareholders and potential investors of the Company informed of the latest business development of the Group.

The Company is pleased to announce that various standards of granular silicon based on Fluidized Bed Reactor (the ''FBR'') of the Company have made breakthrough upon the commencement of production of 10,000 metric tonnes granular silicon and as verified by production operation and the application by downstream users.

Production standard: Various quality standards of our granular silicon have reached the Siemens dense silicon material standard, with some of the quality standard outperforming those for dense silicon materials. Through long-term development of auxiliary materials such as liner materials, the Company reduced total metal content to below 10ppbw, carbon content to below 0.4ppma, hydrogen content to below 20ppma, and fine powder rate to below 0.1% without incurring additional costs. The hydrogen content of 10,000-tonne production line dropped by approximately 30% compared with the 6,000-tonne production line in the previous stage.

Yield: The yield of granular silicon is approximately 99%, of which 90% can be used for monocrystalline materials. The reduction rate of single-time reduction applying the Siemens process is 10-12%, which leads to relatively high overall energy consumption of the Siemens process.

Advantages of granular silicon: The investment in 10,000 metric tonnes granular silicon production project based on FBR, which is exclusively owned by the Company, is less than RMB700 million, with an overall electricity consumption rate of not more than 20kWh/kg. Granular silicon is spherical in shape, with circularity >0.92mm and median particle diameter of around 2mm. Such specification not only better meets the requirements for monocrystalline materials, but also actualise automated processing and smart production of monocrystalline materials.

Application standard: The issues of metal, silicon powder and carbon content have been sufficiently resolved, as verified by the downstream customers. The issue of hydrogen content has been considerably improved since the first stage. The further optimization plan of hydrogen content is expected to be applied in the launch of the 30,000-tonne production line. Currently, through active cooperation with downstream customers, the Company has improved the use efficiency and doping ratio of granular silicon. There remains vast room for improvement in the application of granular silicon. Through close cooperation with the customers, the Company expects to achieve industrialized application with a high rate of utilization in the future.

Promoting carbon neutral: Carbon footprint has been traced throughout the complete photovoltaic (''PV'') path of crystalline silicon components produced by applying granular silicon produced based on FBR and the improved Siemens rods. 1GW polysilicon materials only in polysiliconization can reduce CO2 emission by 130,000 tonnes, which is 74% lower than that of Siemens. Under the whole PV industry chain, 1GW components can reduce CO2 emission by at least 47.7%.

The data quoted in the announcement are the analysis results obtained by the Group based on its actual production data. Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company.

By order of the Board

GCL-Poly Energy Holdings Limited 保利協鑫能源控股有限公司

Zhu Gongshan

Chairman

Hong Kong, 9 March 2021

As at the date of this announcement, the Board comprises Mr. Zhu Gongshan (Chairman), Mr. Zhu Zhanjun, Mr. Zhu Yufeng, Ms. Sun Wei, Mr. Yeung Man Chung, Charles, Mr. Jiang Wenwu and Mr. Zheng Xiongjiu as executive Directors; Ir. Dr. Raymond Ho Chung Tai, Mr. Yip Tai Him, Dr. Shen Wenzhong and Mr. Wong Man Chung, Francis as independent non-executive Directors.