December 27 -- Zhejiang Sunflower Light Energy Science and Technology (300111), a producer of photovoltaic modules and cells, plans to invest 1.5 billion yuan to set up a solar energy power plant in Yunnan in order to expand in the domestic market and to extend its industry chain, reports Shanghai Securities News, citing a company filing.

According to the company, it signed agreements with the Yuanmo Town district government for the leasing of a plot of land with an area of 5,000 mu (one mu = 666.67 square meters), and for the first phase of the plant to have a minimum capacity of 100 MW.

According to the report, the investment may generate a new source of revenue, and improve the company's gross profit margins, with the margins of its component business expected to increase by an estimated 20 percent.

In addition, the power station investment could expand its sales channel as the components that will be utilized will account for 30 percent of the company's current production capacity.

It was reported that 77 million restricted shares will be unlocked in February 2012.