Sunpower secures 77m yuan contract from repeat customer

SUNPOWER Group has secured a 77 million yuan (S$15.4 million) contract from a repeat customer, which is expected to have a positive impact on its FY 2019 and 2020 performance, the environmental protection solutions provider said on Thursday after market close.

Under the manufacturing and services (M&S) contract with Jiangsu Hailun Petrochemical Co, Sunpower will provide heat exchanger equipment for an upgrading project at Jiangsu Hailun's chemical production facility.

Sunpower expects to complete delivery by the first half of 2020, which will have a positive impact on financials for the years ending Dec 31, 2019 and 2020.

Sunpower's relationship with Jiangsu Hailun dates back to 2010. Sunpower executive chairman Guo Hongxin said: "Our strength in the M&S segment will complement the rapid growth of our GI (green investments) business which the group has identified as its primary value creator and growth driver for the long term."

Sunpower shares closed up 1.5 Singapore cents or 3.13 per cent at 49.5 Singapore cents on Thursday before the news.