KSC

 PV  AUDIT  
Resume  
 
 
 
On  behalf  of:  UniCredit  Leasing  S.p.A.  
 
 
Photovoltaic  Modules  :  ZnShine  
           Introduction

The  study  commissioned  by  UniCredit  Leasing  S.p.A.  to  Kig  Roma  Srl  provides  a  complete  analysis  concerning  the  
photovoltaic  modules  manufacturer  ZnShine.  
In   cooperaWon   with   Key   Services   China   Co.,   Ltd,   Kig   Roma   Srl   has   developed   a   comprehensive   and   complex  
procedure   that   will   issue   a   document   called   the   evaluaWon   "KSC   Audit   Minutes"   that   has   been   shared   and  
approved  by  UniCredit  Leasing.  
The   study   has   the   target   to   evaluate   technical   aspects   related   to   the   producWon   of   photovoltaic   modules,  
economic  and  financial  data  company.  
In   the   last   chapter   of   the   document   will   be   given   a   summary   of   the   numerical   evaluaWon,   will   be   shown   the  
"raWng"  of  the  mark  in  the  analysis  as  well  as  any  comments  and  suggesWons.  

INDEX

1. Company  Information  
1.1. Legal  Information  
1.2. Audited  Factory  Information  
1.3. Company  Structure  Information  
1.4. Product  Information  
1.5. Quality  Management  &  Production  Lines  
1.6. Warranty  and  Insurance  Information  
1.7. Oversea  Offices  and  After  Sales  Services  Information  
1.8. Supplier  Management  
2. Production  Line  Audit  
2.1. Cells  Entry
2.2. Tabbing  
2.3. Stringing
2.4. Lay  Up  
2.5. String  /  Module  Pre-­‐Flashing  
2.6. EL  Scan
2.7. Lamination  
2.8. Framing  
2.9. Flashing
2.10. Packaging  
3. Supplier  evaluation,  summary  and  suggestions  
3.1. Supplier  evaluation  
3.2. Summary  and  Suggestions  
                                       3.2.1                              Company  information  Audit  summary  and  suggestion  
                                       3.2.2                              Bill  of  material  summary  and  suggestions
                                       3.2.3                              Production  line  audit  summary  and  suggestions
                                           3.2.4                              Economic  and  Patrimonial  Index  audit  summary  and  suggestions  

KSC  PV  Audit  –  confidential  Information

All  rights  reserved  with  KIG  ROMA  S.r.l  and  KEY  SERVICES  CHINA  Co.,  Ltd
1. Company  Information  

 1.1. Legal  Information  /  Informazioni  Legali

Registered  Name: 金坛正信光伏电子有限公司
ZNSHINE  PV-­‐TECH  CO.,LTD
Business  Scope: Monocrystalline  silicon Polysilicon Quartz  Products Silicon  solar  cells  and  modules Solar  outdoor  lighting  
manufacturing  and  processing  ,  Glass  manufacturing  and  processing,  Lighting Glass(Non-­‐medical) Electrical  
parts  manufacturing  and  processing;  Engaged  in  research  and  development  of  new  energy;  Sales  of  products.
Registered   金坛市直溪镇工业集中区1号
Address: #1,Zhixi Industrial Zone,Jintan City,Changzhou
Registration  
320400400018979
Number:
Legal   王桂奋
Representative:   WANG Guifen
Company  Type Listed  company
Shareholders'  list:          ZNShine  
                             N
     ew  
             E    nergy  Technology  Limited  (Hong  Kong)

Capital  Stock:  
12,500,000.00  USD

Stock  Market  
Now  preparing  for  listing  (End  2012)  
Listing  ISIN:
Number  of  employees  
Managers Office  Staff   Factory  workers  

755  Total  -­‐  PV  

25 50
Ingot+Wafer+Automatic  Workshop
Subsidiaries: ZNSHINE  SOLAR  GmbH  /  ZNSHINE  (UK)  LIMITED
Membership  at  PV  
PV  CYCLE
organization:

1.2. Audited  Factory  Information  

Brief  factory  description: NSHINE  PV-­‐TECH  CO.,  LTD.  was  established  in  2006,  with  an  acreage  of  
280,000  m2.  As  a  basic  manufacturer  with  vertically  integrated  production  
chain,  ZNSHINE  focus  on  the  producing  of  silicon  ingots,  wafers  and  solar  PV  
modules.  ZNSHINE  adopts  automatic  production  line  of  Teamtechnik  from  
Germany  and    2BG  from  Italy,  as  a  way  to  ensure  the  best  product  quality.
Address: #1,Zhixi  Industiral  Zone,Jintan  City,Changzhou

1.3. Company  Structure  Information

Other  Factories:                                                                                        Address  
        Production Capacity  

only  one  active  site  with  4   Monocryst  INGOT,  WAFER                                                  100MW                              

workshops                                                     PV  MODULES 100MW  
Vertical  Integration: Grade   Strategy  

Monocrystalline  INGOT,  WAFER,  MODULE In  three  years  they  aim  to  reach  1Gw

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1.4. Product  Information  
Product  type: Monocrystalline Polycrystalline Amorphous Thinfilm

Modules  Wattage  
range: 155W~275W 200W~295W / /

PV  Panel  
Certifications: TUV/MCS/UL/CE/IEC TUV/MCS/CE/IEC / /

1.5. Quality  Management  &  Production  Lines

Quality  manag.  
ISO  9001:2000  certification,  certificate  number  30639;                                                                                                                                                                      
Certif.  (ISO),  N°:    
TUV  quality  management  certification,  certificate  number  76197117389902

Automated  
Tabbing,  Soldering,  Stringing  (+  Semiautomatico  per  Lamination,  EL).  Layup  Manual.  Flashing  Semi.  Cleaning  e  
production  
Packaging  manual
facilities:
Production  
100MW
Capacity:
Capacity  
100%
utilisation:
Production  
1Gw  in  next  3  years
capacity  forecast:

1.6.  ZnShine Warranty  and  Insurance  Information  

Product  Warranty:   Warranty Duration

Materials 10  years
Workmanship   10  years
Nominal  Output:   Percentage   Duration
90%  Nominal  output 10  years
85%  Nominal  output /
80%  Nominal  output 25  years

Other  Insurance:
Insurance  company's  name:                                                       Insurance  Description                                      Insurance  
                                     P    eriod  
                                                                 

Product 1  -­‐  Solar  Insurance&Finance   1  -­‐  Product  insurance  policy,  25  years   1  -­‐  Not  specified,  
Output (The  Netherlands)  -­‐  Certificate  no.  SOLARIF2011006      warranty,  
                                   c  over  
                 a      gainst  
                     reduced  yield,   signed  in  August  
2  -­‐  Zurich  Beijing  branch,   premium  of  180000    euro  per  Mw;   2011                                        
PDC  0010030BJ2011-­‐C01 moreover,  additional  insurance  on   2  -­‐  Signed  on  
nominal  output  (90%  10  years,  80%  20   25/6/2011;  expires  
years)                                                                                           24/6/2012
2  -­‐  Product  liability  insurance  policy  
(only  on  exports),  19,5  mil  RMB  on  
single  loss,  32,5  mil  RMB  annual  
aggregate,  retroactive  from  April  2007

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1.7.  Oversea  Offices  and  After  Sales  Services  Information
Overseas  Agent   Country Type Services   Responding  Time  /  
-­‐  Commercial  Branch  
-­‐  Tech/Service  Branch  
-­‐  Distributor  
-­‐  Agent  

ZNSHINE  SOLAR   Sales/Tech  

Germany Commercial/Tech/Service  Branch 24h
GmbH Service/Assistance

Sales/Tech  
ZNSHINE  LIMITED UK  -­‐  England Commercial/Tech/Service  Branch 24h
Service/Assistance

CLICK  Technology   Technial  Service  and  assistance                                                                        

Italy Sales/Tech/Service 24h
s.r.l (Anche  su  clienti  diretti  di  ZnShine)
FASE  ENGINEERING  
Italy Distributor  IPC Sales/Service
SPA
Transocean  System  
Italy  -­‐  Como Warehouse storage 24h
Transport
COINTRA Italy  -­‐  Roma Warehouse Storage
After  Sales  Service  
Handling  of  
customers   Yes
complaints:
Material  and  
Bar  code  "card"  can  be  traced  back  to  the  date  of  manufacture
production  dates  
The  process  card  can  be  traced  back  to  the  material
traceable:

1.8. Supplier  Management

Suppliers  
Supply  Management
Assessment:
Re-­‐Assessment  
one  year
Period:

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2. Production  Line  Audit
2.1.  Cells  Entry
Result: Passed  √

The  Cells  arrive  at  the  cell  sorting  station  and  are  unpacked  ,visually  checked  and  sorted  by  the  staff    and  a  production  progress  sheet  created  along  with  
module  bar  codes  and  sent  to  the  tabbing  station.

Automated  Process   2.2.  Tabbing

Automated  Process   2.3.  Stringing

The  cells  are  loaded  onto  the  automated  Tabbing  and  Stringing  Device  from  where  they  are  pre-­‐tabbed  and  strung,  as  this  process  is  automated  and  
computer  controlled    the  cells  are  further  checked  for  any  damage,  they  are  then  automatically  put  onto  individual  string  trays  of  12  strings  each.  The  
string  trays  are  picked  up  by  workers  along  with  the    work  sheet  and  put  onto  shelves  on  wheels  to  be  moved  to  the  layup  stations.

2.4.  Lay  Up

Result: Passed  √

At  the  layup  stations  the  workers    layon  the  glass  ,  align  the  strings  against  a  premarked  template,  stick  them  with  tape  ,stick  on  the  barcode,  solder  the  
buss  bars  ,  put  on  the  precut  EVA  and  TPT  ,  do  a  connection  check  and  put  the  modules  on  to  the  mirror  check  rack  and  visually  verify    the  module  is  OK  .
Only  about  50%  of  the  connections  are  tested  after  layup  .

Automated  Process   2.5  String  /  Module  Flashing

The  modules  are  then  put  onto  a  conveyor  belt  and  scanned  with  an  EL  scanner

Automated  Process   2.6.  EL  Scan

The    modules  then  travel  via  conveyor  belt  to  be  flashed  and  the  data  logged.

2.7.  Lamination
Result: Passed  √

The  Modules  are  manually    put  onto  the  laminators  where  they  are  heat  and  vacuum  sealed  for  a  period  of  18  minutes  after  which  they  are  left  to  cool  for  
5  minutes  and  then  all  the  extra  residue  from  the  lamination  process  is  cut  off  and  the  module  trimmed.
The  Lamination  process  is  semi-­‐automated  ,  the  modules  arrive  via  a  conveyor  system  after  the  El  scans  and  are  loaded  manually  onto  the  laminators.

2.8.  Framing  
Result:  Passed  √

The  Semi  automated  Framing  process  involves  workers  applying  Silicon  sealant  into  the  frames  and  then  loading  it  on  to  the  framing  clamps  where  there  
frame  is  pressed  onto  the  module    before  being  transferred  for  junction  box  fitting.  Workers  at  this  station  squeeze  silicon  sealant  around  the  contacts  and  
press  the  junction  box  on  securing  it  with  more  silicon  sealant,  and  connect  the  contacts  from  the  module  to  the  junction  box.
 The  modules  are  then  moved  to  and  stacked  in  the  curing  area  for  a  period  of  8  hours  for  the  silicon  sealant  to  seal  each  stack  has  a  time  card  attached,  
allowing  workers      to  know  when  to  move  the  stack  to  the  next  process.
At  the  Cleaning  Station,  where  workers  clean  each  panel  for  dust  and  silicon  residue  which  maybe  left  over  or  picked  up  during  the  process  chain  they  do  
this  with  cleaning  alcohol  and  scrubbers.  In  the  Hi-­‐Pot  Test  station  workers  place  each  cured  module  onto  a  rack  and  connect  the  module  into  the  Hi-­‐Pot  
Test  device  and  conduct  Dielectric  Withstand,  Bonding  Path  Resistance,  and  Insulation  Resistance  tests.

Automated  Process   2.9.  Flashing

Result:  Passed  √

Next  the  Modules  are  individually  loaded  onto  the  Flash  Machine  while  workers  connect  the  panel  to  the  device  and  an  automated  process  sun  simulates  
the  module  and  the  data  feedback  is  recorded  on  the  computer  and  logged  for  each  module.
The  modules  which  do  not  comply,  or  out  of  tolerance  are  again  re-­‐tested  and  subsequently  degraded  to  the  rank  B,  rather  than  re-­‐sent  to  the  production  
line  for  the  correction  of  defects

2.9.  Packaging

Result: Passed  √

Packaging Station, here the modules are fitted with corner protectors and 40 modules are stacked onto a pallet and a cardboard housing fitted on and the pallet sealed,
then workers attach a sheet containing barcodes of the modules as a packing list onto the pallet and then they are wrapped in clear plastic sheets to protect the pallet
from  rain,  and  then  moved  to  the  warehouse  for  delivery.

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Production  Line  Process  Chart  of  ZnShine

Automated

Tabbing  
Cell  Entry  

Stringing   Layup  
Automated

Semi-­‐Automated

Visual  Check   Module  Flashing  

Semi-­‐Automated

Automated

EL  Scan   Lamina\on  

Semi-­‐Automated
Cooling   Framing  

Junc\on  Box  Fi]ng   Curing  

Cleaning   Hi-­‐Pot  Test  

Automated  
Process  
Flashing   Packaging  

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At  ZN  Shine  Solar  the  production  line  process  is  as  follows:
a.) The Cells arrive at the cell sorting station and are unpacked ,visually checked and sorted by the staff and a production progress sheet created along with
module  bar  codes  and  sent  to  the  tabbing  station.
b.) The cells are loaded onto the automated Tabbing and Stringing Device from where they are pre-­‐tabbed and strung, as this process is automated and
computer controlled the cells are further checked for any damage, they are then automatically put onto individual string trays of 12 strings each. The
string  trays  are  picked  up  by  workers  along  with  the    work  sheet  and  put  onto  shelves  on  wheels  to  be  moved  to  the  layup  stations.
c.) At the layup stations the workers layon the glass , align the strings against a premarked template, stick them with tape ,stick on the barcode, solder the
buss  bars  ,  put  on  the  precut  EVA  and  TPT  ,  do  a  connection  check  and  put  the  modules  on  to  the  mirror  check  rack  and  visually  verify    the  module  is  OK  .
d.)  The  modules  are  then  put  onto  a  conveyor  belt  and  scanned  with  an  EL  scanner  
e.)  The    modules  then  travel  via  conveyor  belt  to  be  flashed  and  the  data  logged.
e.) The Modules are manually put onto the laminators where they are heat and vacuum sealed for a period of 18 minutes after which they are left to cool
for  5  minutes  and  then  all  the  extra  residue  from  the  lamination  process  is  cut  off  and  the  module  trimmed.
f.) The Semi automated Framing process involves workers applying Silicon sealant into the frames and then loading it on to the framing clamps where
there  frame  is  pressed  onto  the  module    before  being  transferred  for  junction  box  fitting.
g.) Workers at this station squeeze silicon sealant around the contacts and press the junction box on securing it with more silicon sealant, and connect the
contacts  from  the  module  to  the  junction  box.
h.) The modules are then moved to and stacked in the curing area for a period of 8 hours for the silicon sealant to seal each stack has a time card attached,
allowing  workers      to  know  when  to  move  the  stack  to  the  next  process.  
i.) At the Cleaning Station, where workers clean each panel for dust and silicon residue which maybe left over or picked up during the process chain they do
this  with  cleaning  alcohol  and  scrubbers.  
j.) In the Hi-­‐Pot Test station workers place each cured module onto a rack and connect the module into the Hi-­‐Pot Test device and conduct Dielectric
Withstand,  Bonding  Path  Resistance,  and  Insulation  Resistance  tests.
k.)Next the Modules are individually loaded onto the Flash Machine while workers connect the panel to the device and an automated process sun
simulates  the  module  and  the  data  feedback  is  recorded  on  the  computer  and  logged  for  each  module.
l.  Packaging  Station,  here  the  modules  are  fitted  with  corner  protectors  and  40  modules  are  stacked  onto  a  pallet  and  a  cardboard  housing  fitted  on  and  the  
pallet sealed, then workers attach a sheet containing barcodes of the modules as a packing list onto the pallet and then they are wrapped in clear plastic
sheets  to  protect  the  pallet  from  rain,  and  then  moved  to  the  warehouse  for  delivery.

Automated  
Process  

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3. Supplier  evaluation,  summary  and  suggestions

3.1            Supplier  evaluation:  AUDIT  PASSED

3.2 Summary  and  Suggestions

 3.2.1        Company  information  Audit  summary  and  suggestion
We  want  to  point  out  that  ZnShine  is  opening  a  branch  in  Italy  that  will  take  care  of  the  markeMng  and  technical  
assistance.  Is  to  emphasize  that  it  was  noMced  a  high  turnover  of  technical  and  commercial  staff.  
 
 3.2.2        Bill  of  material  summary  and  suggestions
                                                     
Zn  Shine  has  three  suppliers  for  each  raw  material  used  and  purchases  are  tracked  well.  
It  was  suggested  to  use  new  technologies  to  seal  the  aluminum  frames  by  replacing  the  liquid  silicon  with  the  silicon  
seals  of  the  last  generaMon.  
It  would  be  beQer  that  the  factory  would  lead  much  more  laboratory  tests  on  glass  and  aluminum  frames  to  verify  
the  best  technical  features.  
3.2.3          Production  line  audit  summary  and  suggestions
The  condiMons  of  ZnShine  producMon  line  are  definitely  good  and  the  factory  is  well  organized  and  automated.  The  
only  one  suggesMon  is  to  improve  access  and  control  between  the  flashing  area  and  the  packing  in  order  to  maintain  a  
constant  temperature  for  the  modules.  The  raw  materials  are  all  checked  at  the  arrive  to  warehouses,  where  in  fact  
they   carry   out   checks   on   all   stocks   prior   to   being   sent   to   the   manufacturing   department.   At   every   step   of   producMon,  
supervisors  and  quality  control  staff  ensure  the  respect  of  producMon  standards  (ZnShine  and'  in  line  with  the  IEC).  
The  work  instrucMons  are  well  on  display  for  each  workstaMon.  The  modules  do  not  comply,  or  out  of  tolerance  are  
again  re-­‐tested  and  subsequently  degraded  to  the  rank  B,  rather  than  re-­‐sent  on  the  producMon  line  for  the  correcMon  
of  defects.  
3.2.4      Economic  &  Patrimonial  Index  summary  and  suggestions
It  must  noted  that  the  DSO  and  DPO  turnover  raMos  have  been  calculated  roughly,  because  the  prospectus  and  
financial  statements  that  have  been  provided  did  not  allow  to  have  adequate  informaMon.  
 
   
 
NOTE  OF  UNICREDIT  LEASING:  
“UCL  is  available  for  entering  into  leasing  transacMons  for  projects  using  crystalline  solar  modules  produced  by  
“ZnShine  PV-­‐Tech  co.,Ltd”  
The  financed  modules  must  be  within  the  power  range  cerMfied  by  TÜV  Rheinland,  TÜV  Sud,  VDE  or  ICIM  S.p.A.  
according  to  IEC61215.  
Please  kindly  note  that  individual  projects  are  subject  to  approval  by  the  competent  credit  commiQees  within  
UniCredit  Group.  
This  informaMon  is  valid  unMl  March  2012.  The  informaMon  is  not  valid  for  UniCredit  Leasing  Germany.”  

AUDIT  DATE:   17th  -­‐  18th  August  2011

Commissioner:     UniCredit  Leasing  S.p.A.
PV  Modules  brand:   ZnShine
       
KSC  Auditors:   Senior  Eng.:  David  Doss
Dr.:  Alessandro  Bielli
Kig  Roma  Srl  Supervisor:   Dr.:  Alessandro  Bielli

KSC  PV  Audit  –  confidential  Information    

All  rights  reserved  with  KIG  ROMA  S.r.l  and  KEY  SERVICES  CHINA  Co.,  Ltd