Suspended Hanergy thin film's first-half profit reverses to loss

Hanergy Thin Film Power, the Hong Kong-listed solar energy business whose shares have been suspended since May 20 when a plunge in their price wiped out $19 billion of market capitalization in minutes, yesterday posted a loss of HK$59.3 million, or $7.7 million, for the six months ended June 30.  That compares with net income of HK$1.7 billion a year earlier.

Hanergy said the loss resulted in part from the suspension and termination of a majority of connected transactions between Hanergy and its parent company and affiliates, following what the Beijing-headquartered company said on July 16 was an expression of concern by Hong Kong’s securities regulator about their “large number” and the “ongoing viability of the group and its financial dependence” on the parent.  Hong Kong’s regulator has launched an investigation into Hanergy, whose share price rose more than six-fold in the 12 months before trade was suspended.

First-half revenue fell to HK$2.1 billion from HK$3.2 billion. Hanergy signed contracts with Shandong Macrolink, Baota Investment and Beijing Manshi investment for equipment and service worth a total of 20 billion yuan over time, the company said.

Hanergy said on July 16 it had submitted a restructuring proposal to the Hong Kong regulator to “materially reduce or terminate all or part of the existing continuing connect transactions” with the parent company.  That proposal is still pending for comments by the relevant regulatory authority, Hanergy said earlier this month.  MSCI removed Hanergy from its indexes this week. Hanergy Chairman Li Hejun, who was China’s richest man earlier this year during the company’s stock peak,  also has interests in hydroelectric power generation.

http://www.forbes.com/sites/russellflannery/2015/08/28/suspended-hanergy-thin-films-first-half-profit-reverses-to-loss/?ss=energy