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Beijing News Beike Finance (Reporter Zhu Yueyi) On the same day that the first two Saudi Arabian ETFs (Exchange Traded Funds) were listed in China and both hit their daily limit, on the evening of July 16, three Chinese new energy companies simultaneously announced the news of building factories in Saudi Arabia.

JinkoSolar (688223.SH) announced that its wholly-owned subsidiary Jinko Middle East signed a Shareholder Agreement with Renewable Energy Localization Company, a wholly-owned subsidiary of the Saudi Arabian Public Investment Fund (PIF), and Vision Industries Company to establish a joint venture in the Kingdom of Saudi Arabia to build a 10GW high-efficiency battery and module project.

The battery and module project is JinkoSolar's largest overseas investment project to date, with a total investment of approximately 3.693 billion Saudi riyals (approximately US$985 million), with funds coming from the joint venture's own or self-raised funds.

TCL Zhonghuan (002129.SZ) announced that it plans to sign a "Shareholder Agreement" with Vision Industries Company and Renewable Energy Localization Company, a wholly-owned subsidiary of the Saudi Arabian Public Investment Fund, to establish a joint venture to jointly build a 20GW photovoltaic crystal wafer project in Saudi Arabia.

TCL Zhonghuan said that the project is currently the largest crystal chip factory overseas, with a total investment estimated to be approximately US$2.08 billion.

On the evening of July 16, Envision Technology Group also announced that it would establish a wind power equipment joint venture in Saudi Arabia with the Saudi Public Investment Fund and Saudi energy equipment company Vision Industries to carry out localized production and manufacturing of wind turbines and key components.

Envision Technology Group has not yet disclosed the investment amount of the joint venture project. The total investment amount of JinkoSolar and TCL Zhonghuan project is US$3.065 billion, which is equivalent to RMB 22.229 billion at the current exchange rate.

Shell Finance reporters noted that the three Chinese private enterprises will play a leading role in the joint venture.

According to the announcement, JinkoSolar Middle East will hold a 40% stake in the joint venture, which will be consolidated into JinkoSolar. TCL Zhonghuan will also hold a 40% stake in the joint venture. Envision also revealed that it will be the largest shareholder of the joint venture.

JinkoSolar, TCL Zhonghuan and Envision are rushing to Saudi Arabia to build factories, all of which are part of their overseas journey towards new hot spots and globalization under Saudi Arabia's vision of achieving energy transformation.

JinkoSolar Chairman Li Xiande positioned the Middle East project as another major milestone in the implementation of the company's globalization strategy, saying it will further help the company optimize its global manufacturing and marketing layout and enhance its global competitiveness.

Zhang Lei, chairman of Envision, said that the two-way cooperation between China's "Belt and Road" initiative and Saudi Arabia's "Vision 2030" will provide new impetus for the global zero-carbon transformation. Envision will effectively promote the development of Saudi Arabia's new industrial system through the localization of the industrial chain.

As one of the common partners of the three Chinese private enterprises mentioned above, the Saudi Arabian Public Investment Fund (PIF) is one of the most important institutional investors in Saudi Arabia. PIF President Yasir Al-Rumayyan recently visited China and met with many senior Chinese political and business leaders, expressing his willingness to strengthen China-Saudi cooperation. In addition, the three state-owned banks, Bank of China, China Construction Bank and Industrial and Commercial Bank of China, also signed strategic cooperation agreements with PIF in July.

Editor: Li Zheng

Proofreading to Fu Chunyin