A somewhat complicated transaction has been revealed within a GLC New Energy filing, which outlines the sale of its PV manufacturing equipment to China Finance, only for it to be leased back to subsidiaries of the company. The transaction is being used to raise additional liquidity, in a bid to support the company’s business operations.

There have been two deals set up between GCL New Energy, China Finance, and several of the company’s other subsidiaries. The first is a deal for Gaoyou PV Power Generation Equipment, to be sold to China Finance for RMB 61, 337, 800 (USD 9.1 million). That equipment will then be leased to Gaoyou GCL (a subsidiary of GNE) for ten years, at a total cost, including administrative fee, of RMB 79, 135, 595.59 (USD 11.7 million).

The second deal, identical in its structure, is for Baoying PV Power Generation Equipment being sold to China Finance for RMB 36,896,047.58 (USD 5.5 million), then to be leased to Baoying GCL (a subsidiary of GNE) for ten years, at a total cost, including administrative fee, of RMB 47, 829, 357.35 (USD 7.1 million).

The company announced that the reason for the deal is to raise additional liquidity, which will give the company further working capital to support its business and operational activities. At the beginning of the year, the company announced that it was looking to raise significant capital to reduce the company debt and to stimulate business development, particularly in the solar plant segment.