DCP’s Investment in Sunpower Group
Time:2018-09-11 From:DCP

(September 11, 2018)DCP Capital (“DCP”) today announced that it has invested a total of USD$120 million through 2 rounds of Convertible Bonds to support the continued growth of Sunpower Group Limited (“Sunpower” or the “Company”) (SGX: 5GD.SI). The investment will support Sunpower expand its valuable portfolio of Green Investments assets to capitalize on the enormous growth potential of the environmental services industry in China.

Sunpower is one of the leading environmental protection solution providers in China. The growing severity of PM2.5 air pollution across the country has prompted the government to introduce various pollution control policies. Regulations now require the phase out by 2020 of small high-emission coal-fired boilers used to generate heat and steam. As an alternative, centralized boilers deploying “clean-coal” technology have seen a significant increase in demand across China. Backed by its proprietary technologies in high efficient heat transfer, energy savings and ultra-low emissions, Sunpower has been successfully expanding into the Green Investments segment as an investor and operator of such centralized boiler facilities, supplying steam to industrial customers and providing heat to local residents as well as selling electricity to the State Grid.

In addition to the Green Investments business, the Company has built up a strong Environmental Manufacturing and Services (M&S) businesses over the past two decades. Sunpower has served approximately 1,500 customers in over 15 industries to date with a blue chip global client base including BP, BASF, Shell, SABIC, DowDuPont, Alcoa, Sinopec, PetroChina and CNOOC, among others. Supported by its advanced technology and high-precision manufacturing and project management expertise accumulated in the Company’s M&S segment, Sunpower has gained an unique competitive edge in its Green Investments segment and is able to replace on-site coal-fired boilers in industrial parks with the centralized steam boilers that are more efficient and environmentally friendly. In particular, Sunpower’s Green Investments projects are capable of achieving ultra-low emissions comparable to that of natural gas.

As an early mover in the industry, Sunpower has developed a robust portfolio and pipeline of projects through both greenfield projects and acquisitions of existing coal-fired boilers. Sunpower’s portfolio includes multiple Green Investments projects in operation or under construction in developed areas such as Jiangsu, Guangdong, Anhui, Shandong and Hebei provinces. The Company also has dozens of projects under evaluation. Given that many Green Investments projects are typically protected with 30-year concession agreements with exclusive rights to renew, Sunpower’s portfolio of assets generate long-term, stable and recurring cash flows with attractive double-digit returns.

Mr. Guo Hong Xin, Executive Chairman of Sunpower, commented: “We are excited to have DCP’s continued commitment and confidence in the long-term growth potential of Sunpower. The DCP team is among the most experienced and successful PE investors in China who brings us not only long-term capital but also operational value-added partnership that supports our growth.”

Mr. David Liu, Executive Chairman of DCP, said: “Sunpower is unique in the fast-growing anti-smog sector with its industry leadership, outstanding management team and fully integrated capabilities. We have built a trusted partnership with the management team over the years and deeply respect their operational capabilities and integrity. We look forward to fully utilizing our expertise and network to help Sunpower further enhance its market leadership.”

Mr. Frank Ma Ming, Executive Director of Sunpower, added: “Sunpower is well positioned to drive towards the next phase of growth with a vision of becoming the top-tier environmental protection solution provider in China. We hope to leverage DCP’s deep industry knowledge and their M&A and portfolio management capabilities to accelerate our business expansion."

About Sunpower Group Limited

Founded in 1997, Sunpower Group Ltd. (SGX: 5GD.SI) is a leading environmental protection solutions provider with over 20 years of experience in the environmental protection services and energy saving industry.

The Company is powered by two business segments - Green Investments, the key initiative which invests, builds and operates steam, heat and electricity generation plants using its proprietary technologies in industrial parks; and Manufacturing & Services (M&S), which provides customized high-end equipment and one-stop services to a diverse range of industry customers.

The Company serves over 1,500 customers in 30 countries, including the well-known international customers such as BASF, Shell, DowDuPont, BP, SABIC, Alcoa and Mobil, and Chinese conglomerates such as Sinopec, CNOOC, CNPC and ChemChina.

Over the years, Sunpower has won numerous awards including the National Quality Engineering Award, China Key National Product, National Torch Plan High/New Technology Enterprise and Technology Innovation Achievement.

For more information, please refer to:

About DCP

DCP Capital (“DCP”) is an international private equity firm that focuses on opportunities in Asia. The DCP team previously led KKR and Morgan Stanley’s private equity businesses in Greater China, with an outstanding long-term track record across multiple economic cycles. Over the past 26 years, the DCP team has led a number of successful transactions and nurtured numerous industry leaders, such as Ping An Insurance, Mengniu Dairy, Far East Horizon, CICC, Haier Electronics, Modern Dairy, Sunner Development, Belle International, COFCO Meat, Nanfu Battery, China Cord Blood, Hengan International, United Envirotech Ltd, Paradise Retail, Asia Dairy, Venus MedTech, MFS Technology, etc. Combining its global investment experience and extensive local network, the DCP team has accumulated deep industry knowledge and strong operational capabilities. DCP is strongly supported by a diverse group of world-class long-term institutional investors, including leading sovereign wealth funds, pension funds, endowments, family offices and funds of funds around the globe. As a long-term value investor, DCP is committed to building long-term, win-win partnerships with portfolio companies and help support value creation initiatives.