Shunfeng International Clean Energy Ltd (HKG:1165) today said it expects to report a 2016 loss of CNY 923 million (USD 133.5m/EUR 126.5m) and announced the scrapping of a deal to sell its solar products manufacturing division.
The China-based firm was to sell for CNY 5 billion its unit Jiangsu Shunfeng Photovoltaic Technology Co Ltd, the one that bought bankrupt photovoltaic (PV) products maker Wuxi Suntech Power several years ago, under a memorandum of understanding (MoU) signed in mid-2016 with Asia-Pacific (China) Investment Management Ltd. Today it said the parties have agreed to end discussions relating to the disposal “at this stage”.
As regards to the expected loss for the year, Shunfeng said it was due to the share of losses of subsidiaries Suniva Inc and Lattice Power Corp, increased finance costs, a loss from bad debts and impairments, and the CNY 480 million of lost revenue from its power generation business because of grid curtailments in certain Chinese provinces.
The CNY-923-million loss, based on preliminary estimates, compares to a profit of CNY 58 million in 2015. Shunfeng will release audited results in March.