Comtec Solar forecasts 2016 loss, signs development deal

“The magnitude of (the) loss is yet to be quantified,” it said in a statement to the Hong Kong stock exchange.

The company partly attributed the anticipated loss to its decision to write down its factory assets in Malaysia, which are being sold to Chinese monocrystalline silicon producer Longi at a a substantial discount of 200 million ($28.74 million).

Comtec Solar also plans to write down assets related to undisclosed production facilities in China, as well as an unspecified portion of its inventory.

The decision of several unspecified PV module suppliers to scale back production in the second half of the year created “challenging” market conditions by dragging down average selling prices of wafers and polysilicon, the company said.

It expects to release its full-year results by March 31, 2017.

Separately, the company revealed that wholly owned subsidiary Comtec Solar Renewable Energy (Jiangsu) had signed a strategic cooperation framework agreement with the administrators of the Wuxi Huishan Economic Development Zone.

The two parties plan to jointly build intelligent energy charging facilities and develop an undisclosed amount of rooftop PV capacity in Jiangsu province through 2020.

In early January, Comtec Solar revealed plans to expand into downstream PV development by raising roughly HK$611.13 million ($78.8 million) through a subscription agreement with China First Capital Group.

 

Author: Brian Publicover