Kong Sun forecasts 2016 net profit

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The outlook is based on a preliminary review of unaudited management accounts for the 2016 calendar year, Kong Sung Holdings said in a statement to the Hong Kong stock exchange.

Sales of electricity generated by its PV assets likely hit 561 million yuan in 2016, from 118 million yuan a year earlier.

Kong Sun — which had roughly 1.15 GW of cumulative installed solar capacity in China by the end of December — also benefited from the disposal of affiliated companies, for a total 109 million yuan one-off gain.

However, the group expects a 67.3% year-on-year decline in its overall turnover for the twelve months to the end of December, underscoring its shifting focus from sales of solar products to investment in higher-margin electricity sales.

It has yet to finalize its annual results for 2016.

Kong Sun jumped from property investment to PV in 2014, after raising roughly HK$2.3bn ($296.4 million) in a share placement.

The group, which primarily uses financial leasing to raise money for projects, finalized a 5 billion yuan financing deal in November with China Kangfu International Leasing.

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