Hanergy Thin Film, the aspirant Chinese solar firm that has endured a tumultuous past 18 months, has surprised the markets this week by issuing a preliminary first half (H1) 2016 financial report that forecasts a return to profit.
Despite having its shares suspended by the Hong Kong stock exchange for more than a year, Hanergy Thin Film says that it is forecasting a 50% increase in revenue for the six months ended June 30 this year when compared to the same period in 2015, when revenue reached HKD 2.1 billion (~$270 million).
According to the Hanergy filing, the it is the firms downstream success that has delivered in H1 this year, with the sale of household and C&I rooftop systems enjoying a 200% increase year-on-year, while upstream production income increased by 25% over the same period.
It is in this upstream business segment where bones of contention were formed last year, with Hanergy accused of receiving a large amount of orders for its a-Si equipment from its own wholly-owned subsidiaries and other companies that were largely unconnected with the solar industry.
Such deals prompted doubts as to the legitimacy of certain transactions and filings, while earlier in the year an investigation into Hanergys business practices by the Hong Kong Securities and Future Commission (SFC) saw its share price tumble by 47% in the space of one hour, wiping $18 billion from its market value.
Since the tumult and subsequent trading freeze, the company has undertaken a restructuring plan following reports of a 90% net loss this time last year, while in December the firm was reported to have seen $2 billion in equipment supply contracts lapse. More recently, the company has unveiled four prototype solar-powered electric vehicles as part of its diversification strategy, which has included a ramping up of downstream projects.
These preliminary figures are unaudited, and Hanergy advised that a full disclosure of the companys financials for the first half of the year will be published before the end of August.