Chinese solar firm Hanergy Thin Film has predicted a surprisingly strong set of financial results for the first half of 2016, with increased profit and shipments.
Just over a year ago, Hanergy Thin Film shares plunged 47% and trading was halted on the company’s shares, which resulted in a trading freeze which has lasted more than a year. Over that time, the company’s worth has dropped substantially, with Bloomberg reporting in December that the company had lost $20 billion in value over the previous 7 months.
However, earlier this month, Hanergy Thin Film made the surprising announcement that it was expecting to report a positive profit in its upcoming financial statement for the first six months ending June 30, 2016. Specifically, according to the Positive Profit Alert (PDF) the company posted on July 19, the company is expecting to announce an increase in revenue of approximately 50% as compared to the same period a year earlier.
The Alert is based on “the Company’s preliminary assessment of the information current [sic] available,” unaudited figures which could change by the time the company is ready to make its official financial statement for 1H’16. However, Hanergy Thin Film also announced that the sales of its downstream household rooftop systems had recorded an impressive 200% increase over the same period, and that the income from its upstream production line delivery business had itself seen an increase of 25%.
The news was tempered somewhat by a more recent Voluntary Announcement (PDF) in which Hanergy Thin Film revealed that its parent company Hanergy Holding Group had proposed a deferred payment deal on overdue debts totaling $360 million, and interest penalty payments amounting to approximately $25 million, renewing concerns of Hanergy Holding Group’s financial solidity.
According to Hanergy Thin Film, it has been “negotiating with Hanergy Holding and its subsidiaries for the repayment arrangements,” but no further details were made apparent.
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