Shunfeng forecasts $133m loss in 2016

The diversified renewables group likely suffered an unspecified loss in the second half of 2016, following a first-half profit of roughly 54.5 million yuan, down 68.4% year on year.

It attributed its poor performance in 2016 to a range of issues.

Curtailment pressures in northwestern China — particularly in the Xinjiang region and Gansu and Qinghai provinces — resulted in an estimated shortfall of about 600,000,000 kWh of anticipated PV generation, representing about 480 million yuan in lost revenue.

The group said that it expects to absorb some of group unit Suniva’s anticipated $16.3 million full-year loss, following its purchase of a 63.13% stake in the US solar panel manufacturer.

In addition, Lattice Power’s anticipated $19.5 million loss in 2016 will further erode SFCE’s profitability, as it owns a 59% stake in the US semiconductor supplier.

SFCE also said that loans it obtained to expand its downstream solar business pushed its financing costs up by roughly 8.4% in the second half and by roughly 35%, or 245 million yuan, throughout all of 2016.

The group, which recorded a full-year profit of about 58 million yuan in 2015, said in a separate statement to the Hong Kong stock exchange that it has cancelled a plan to sell group unit Jiangsu Shunfeng Photovoltaic Technology to Asia-Pacific (China) Investment Management.

It did not say why the two parties decided to scrap the non-legally binding memorandum of understanding.

Author: Brian Publicover