Hareon faces huge losses, possible delisting from stock market

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Shanghai-listed solar PV manufacturer, Hareon announced Tuesday that it is likely to post an operational loss of between RMB 2.37 billion and 2.84 billion ($370 million to $444 million) in 2017.

After the deduction of non-recurring items, Hareon may record a net loss of RMB 2.04 billion to RMB 2.51 billion ($319 million to $392 million). Because the company recorded a similarly poor performance in the fiscal year 2016, it is to be publicly marked with a delisting warning, according to the regulations of the Shanghai Stock Market.

This is not the first time Hareon has found itself facing the threat of delisting. In fiscal year 2013 to 2014, the company’s record net loss also marked it out for concern. But in 2015, Hareon rallied, recording a modest profit of RMB 96 million, which is around $14 million.

However, if Hareon fails to post a net profit in 2018, the company will be delisted from the Shanghai Stock Market. In an attempt to avoid this, Hareon tried to bring strategic investor, Huajun Holding, in to reorganize the business, back in January 2016. This potential collaboration was abandoned last July, as Huajun retreated from the investment.

Hareon has officially stated that all of the figures in its report are preliminary, and accurate financial data will be revealed in the audited financial reports later this quarter.

Author: Vincent Shaw

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