Effective yesterday, Hanergy Holdings has announced the termination of a US$175 million order, announced at the start of May, for wholly-owned subsidiary, Fujan Apollos silicon-based BIPV production equipment and technical services.
The original deal had envisioned six BIPV module assembly lines, although details on when or where the delivery and manufacturing would take place were absent.
"After arms length negotiations, the parties to the Equipment Sales and the Technical Services Agreements agreed to terminate the Equipment Sales and the Technical Services Agreements and had on 14 June 2015 entered into a termination agreement," wrote Hanergy in a statement released today.
In an article questioning the companys business model and looking at what the future holds, in the upcoming July issue of pv magazine, Charles Yonts, head of sustainable research at CLSA says that three contracts were signed by Hanergy in March and April with a Chinese chemical company, a steel company and "someone else," to sell equipment and issue shares to those companies.
"The sales were to companies that clearly shouldnt be producing solar panels, chemical companies and so on," says Yonts, adding, "I was left with no idea what on earth those contracts were about, unless the stated reason was not actually what the sale was about."
Following the news that Hong Kongs Securities and Futures Commission (SFC) is carrying out an investigation into Hanergy Thin Film, the companys share price plunged 47% in less than an hour, slashing some US$18 billion of its market value.
Speaking to pv magazine at the time, lead solar analyst for Bloomberg New Energy Finance Jenny Chase said she was "exactly zero percent surprised" that the companys stock crashed the way it did. "I am curious as to when this company will begin trading again, if ever," she added.
Meanwhile, also in the July edition of pv magazine, VP of The Trout Group, Adam Crop writes that the NYSE Bloomberg Solar Index "gave up ground for the first time in 2015, falling 5% in the month of May." Hanergy was cited as the "main driver" of this fall, on the back of the investigation.