Xinyi Glass to set up R&D center in Hong Kong

Hong Kong – 20 May, 2009 - Leading integrated float glass, automobile and construction glass, and photovoltaic (“PV’) glass manufacturer Xinyi Glass Holdings Limited (“Xinyi Glass” or “the Group”) (stock code: 00868) is going to set up in Hong Kong the world’s first R&D centre dedicated to the development of technologies for producing energy saving and environmentally friendly glass.

The R&D centre will focus on developing new generation solar energy conversion products and transparent conductive oxide (“TCO”) glass used on thin film solar cell. In addition, the R&D centre will develop highly efficient LOW-E energy saving glass, energy saving and heat-reflective automobile glass product and other advanced environmentally friendly and energy saving glass products.

Mr. LEE Yin Yee, Chairman of Xinyi Glass, said, “Leveraging the competitive edge in quality and cost control that we have for many years, Xinyi Glass has been continuously dedicating our efforts in vertical integration of our business and new product development. We are setting up the R&D centre in Hong Kong because, as a company based in Hong Kong, we hope to be able to fully capitalise on the unique edge of Hong Kong as an international city in alignment with the world to attract local and international talents. This move will speed up development of the Group, allowing it to develop new energy and energy saving and other environmentally friendly glass products that match the roll out of government policies to promote use of solar energy in China.”

Solar power PV industry has been developing rapidly in recent years, with the production volume of the world’s solar cells grown at a compound annual growth rate of 47% between 2000 and 2008, and reached 6.4GW in 2008. China continues to be the largest manufacturing country of solar PV cells in the world, producing about 2GW in 2008. Moreover, SEMI China PV Committee has also been set up to promote healthy development of PV industry and its application products market in China.

Solar energy will be the mainstream of new energy in the future. The demand of ultra-clear PV glass, which serves as the protective layer of solar energy cells, will continue to grow in view of the rapid development of solar energy industry. Xinyi Glass has kicked off commercial operation of its first ultra-clear PV glass production line with daily melting capacity of 300 tonnes in January 2008. The Group is also constructing a second high quality ultra-clear PV glass production line with daily melting capacity of 500 tonnes and it is expected to begin trial operation at the end of next month.

Apart from solar energy, the market for energy saving and environmentally friendly glass products is huge and the Group has been active in seizing market opportunities. It has recently won exclusive contracts to provide glass products for the China Pavilion at the 2010 World Expo in Shanghai and the main stadium of the 2011 Universiade, both covering supply of environmentally friendly, energy saving and safety glass. For the China Pavilion at the World Expo, the Group has already shipped the first batch of Low-E energy saving glass early this month.

Mr. Lee said, “We are pleased to be appointed as the exclusive glass supplier to the construction projects of many world events, which is going to boost the ‘Xinyi’ brand in the international market. In the light of environmentally friendly and energy saving glass becoming mainstream construction materials and solar power surfacing as a key development focus, we will make use of the R&D centre in Hong Kong to develop more relevant products.”

About Xinyi Glass Holdings Limited
Established in Hong Kong and listed on the Main Board of the Hong Kong Stock Exchange in February 2005, Xinyi Glass Holdings Limited is one of the largest integrated manufacturers of high quality float glass, photovoltaic glass (“PV”), glass products for the automobile and construction sectors in China and overseas. The Group has continued to be the largest automobile glass and windshield exporter in the China since 2004. Furthermore, its automobile glass brand was named as “China Top Brand” by the General Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of China and the China Top Brand Strategy Promotion Committee in 2007.

With a sales network that spans over 100 countries and territories worldwide, Xinyi Glass has a solid customer base of renowned companies. Its product range includes high quality float glass, windshields, side and rear windows, plastic and rubber components for automobile glass, environmental friendly and energy saving low-emission coated construction glass for buildings, and other glass products with new technology and used in new energy products, e.g. high quality ultra-clear photovoltaic glass. Xinyi Glass’ production complexes are located in Shenzhen, Dongguan, Wuhu and Tianjin in China.