Chinese polysilicon producer GCL Technology Holdings Ltd. has announced plans to establish a CNY 2.06 billion limited partnership to acquire a 42.5% equity stake in Inner Mongolia Xinyuan Silicon Material Technology Co., Ltd. The move will keep Xinyuan Silicon as a non-wholly owned subsidiary, according to a filing with the Hong Kong Stock Exchange this week.

The development comes amid signs of growing consolidation pressure across China’s polysilicon sector. Recent industry reports suggest that the country’s six largest polysilicon manufacturers are preparing a USD 7 billion initiative aimed at reducing oversupply and stabilizing long-depressed market prices.

Details of the Partnership

The new partnership—established with China Cinda Asset Management Co. Ltd. and several other investors—will acquire shares from Hongyuan Green Energy and Tibet Ruihua for CNY 2.01 billion.

· Cinda will participate as a limited partner with a CNY 1.3 billion contribution.

· GCL Suzhou will invest CNY 760 million.

· Additional smaller contributions will be made by three general partners, including GCL Xuzhou.

The transaction, announced after market close on Dec. 8, is classified as a disclosable and connected transaction under Hong Kong’s listing requirements but does not require shareholder approval. GCL stated that the terms are “fair and reasonable,” noting the deal received approval from its board and independent directors.

Industry Context

The acquisition aligns with broader efforts within China’s solar materials segment to address a prolonged supply glut. The reported multi-billion-dollar consolidation plan by the top polysilicon producers—if implemented—could help tighten supply, support wafer procurement activity, and potentially lift prices across the downstream solar value chain.