(Yicai) Sept. 26 -- Shares in Shichuang Energy advanced as much as 2.1 percent today after the Chinese photovoltaic cell maker said it plans to build a high-efficiency solar panel factory that will use the firm’s proprietary stacked gate structure, which can boost power generation and trim production costs, as it extends its reach down the industrial chain.

Shichuang Energy’s share price [SHA:688429] closed up 3.7 percent at CNY17.22 (USD2.45).

The stacked gate design is a specialized surface structure for solar panels that improves conduction on the surface of the modules, making them more efficient and greatly reducing the use of silver during production, the Liyang-based company said.

"This project will drive the transition of stacked gate module technology from the laboratory to mass production. A portion of the stacked gate panels produced will be sold overseas," said Shichuang Energy, which deals in high-efficiency solar cells, photovoltaic production equipment, and auxiliary materials.

The new facility will cost CNY288 million (USD40 million) to build and will produce 1 gigawatt of solar modules a year, Shichuang Energy said. The construction period is estimated to be nine months. The company's TOPCon cell production line, which was developed and constructed in-house, commenced operations in the first half.

To fund the project, Shichuang Energy plans to raise up to CNY285 million (USD40.6 million) through a private placement of new shares to specific investors. Of this, CNY200 million will go towards building the factory and the remainder will be used to supplement the company's working capital.

While the names of the private placement targets were not mentioned, Shichuang Energy said on Sept. 23 that it plans to link arms with Tongwei Group, the world’s largest producer of solar silicon, to realize the mass production of stacked gate modules.

"Tongwei maintains an open attitude towards different photovoltaic technologies and actively participates in the research and development of all technical routes," a company representative said when approached by Yicai about such a tie-up with Shichuang Energy.

Editors: Tang Shihua, Kim Taylor