Hanergy Thin Film losses for 2015 hit $1.6bn


China’s Hanergy Thin Film (HTF) posted yesterday net losses of HK$12.2 billion ($1.6 billion) for the 2015 calendar, plunging to new depths following 2014’s HK$3.2 billion profit as the fallout from last May’s suspension of trading on the Hong Kong Stock Exchange began to bite.

The loss was HTF’s first since 2009 and can be pinpointed to a single day in May last year when shares dropped 47%, sending the company into a tailspin that culminated in its trading suspension and wiped $19 billion from its value.

A large chunk of last year’s losses – some HK$7.92 billion – came via a "writedown of goodwill", and HTF’s auditor said in a statement that its financial performance "indicates the existence of a material uncertainty that may cast significant doubt about the company’s ability to continue as a going concern".

Li Hejun, the billionaire chairman of HTF, has been seeking new investors for the company, and it was noted in the latest statement that state support is being sought to prop the company up as it assesses its options and charts a path towards returning to trading.

Last year was a particularly bruising one for HTF, in which a number of deals and partnerships were cancelled as the industry reacted badly to the company’s fall from grace. Ikea wound up a distribution deal with Hanergy in November as the loss of 2,000 jobs in August and the resignation of the firm’s deputy chairman in September sowed the seeds for the turmoil that was to come.

In February this year HTF issued a profit warning forecasting "substantially decreased revenues for 2015" as the company reported that its parent Hanergy Holding had failed to pay US$330 million in overdue payments to HTF, with an additional $300 million outstanding.