HONOLULU, HI and JIANGXI, CHINA, Nov 25, 2009 (MARKETWIRE via COMTEX News Network) -- Hoku Materials, Inc., a wholly owned subsidiary of Hoku Scientific, Inc. (NASDAQ: HOKU) established to manufacture and sell polysilicon for the solar market, and Jinko Solar Co., Ltd. (Jinko), formerly named Jiangxi Jinko Solar Co., Ltd., a vertically-integrated manufacturer of silicon ingots, silicon wafers, solar cells and solar modules in China, today announced the amendment of the polysilicon supply agreement in effect between the two companies.
According to the terms of the amendment, both companies have agreed to reduce the term of the sales agreement by one year, and to delay the first shipment date from December 2009 to December 2010. This will result in a ten percent reduction of the total volume of polysilicon to be sold by Hoku to Jinko. The pricing and other commercial terms of shipment for the remaining nine years remain unchanged.
"This amendment provides clear benefits to both parties by adjusting our agreement to account for the financing-related delays experienced by Hoku during the past year and the realities of the polysilicon market today," said Dustin Shindo, chairman and chief executive officer of Hoku Scientific. "Jinko maintains its long-term pricing hedge and supply stability, and Hoku will enjoy some additional flexibility during our first year of production, the year in which our production cost per kilogram of polysilicon is expected to be the highest. We look forward to beginning our regular deliveries of polysilicon to Jinko in 2010."
"This amendment shows Hoku's continued commitment to its partnership with Jinko," said Xiande Li, Chairman of Jinko Solar. "We look forward to receiving polysilicon from Hoku's Pocatello plant in 2010."
Hoku reported that Tianwei New Energy Holdings, Hoku's prospective majority investor, had consented to the amendment.
About Hoku Scientific, Inc.
Hoku Scientific (NASDAQ: HOKU) is a diversified clean energy technologies company with three business units: Hoku Materials, Hoku Solar and Hoku Fuel Cells. Hoku Materials plans to manufacture, market and sell polysilicon for the solar market from its plant currently under construction in Pocatello, Idaho. Hoku Solar markets and installs turnkey photovoltaic systems and related services in Hawaii. Hoku Fuel Cells has developed proprietary fuel cell membranes and membrane electrode assemblies for stationary and automotive proton exchange membrane fuel cells.
For more information visit www.hokucorp.com.
Hoku, Hoku Solar, and the Hoku Scientific logo are trademarks of Hoku Scientific, Inc., and Hoku Materials is the trademark of Hoku Materials, Inc., all rights reserved. All other trademarks, trade names and service marks appearing in this press release are the property of their respective holders.
About Jinko Solar Co., Ltd.
Jinko Solar Co., Ltd. is a large vertically-integrated solar product manufacturer based in China. Specializing in the production of silicon ingots, silicon wafers, solar cells and solar modules, Jinko's silicon industry assets currently include monocrystalline furnaces, multicrystalline furnaces, wire saws, wire squarers, solar cell and solar module production lines, and related production facilities, among others. Jinko is an overseas funded, high technology enterprise wholly owned by JinkoSolar Holding Co., Ltd., a company incorporated in the Cayman Islands.
For more information, visit www.jinkosolar.com.
This press release contains forward-looking statements that involve many risks and uncertainties. These statements relate to Hoku Scientific's (including Hoku Materials) ability to successfully ramp up production to make commercial quality product and ship to Jinko by December 2010; Hoku Scientific's (including Hoku Materials) future financial performance; Hoku Scientific's (including Hoku Materials) business strategy and plans; and objectives of management for future operations. In some cases, you can identify forward-looking statements by terms such as "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "will," "would" and similar expressions intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause Hoku Scientific's actual results, performance, time frames or achievements to be materially different from any future results, performance, time frames or achievements expressed or implied by the forward-looking statements. Given these risks, uncertainties and other factors, you should not place undue reliance on these forward-looking statements. In evaluating these statements, you should specifically consider the risks described in Hoku Scientific's filings with the Securities and Exchange Commission, as applicable. Except as required by law, Hoku Scientific does not assume any obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
Contacts for Hoku Scientific: Hoku Scientific, Inc. Tel: 808-682-7800 Email: Email Contact Contacts for Jinko: Jinko Solar Co., Ltd. Tel: +86-21-68760677
SOURCE: Hoku Scientific, Inc.
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