Shunfeng plans sale of manufacturing unit for $683 million

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Chinese solar PV manufacturer and clean energy company, Shunfeng International Clean Energy (SFCE) announced it has signed a non-binding agreement for the sale of its manufacturing unit, Jiangsu Shunfeng Photovoltaic Technology Company Limited to Hong-Kong-based Asia-Pacific (China) Investment Management Ltd, a company owned by Kong Kong tycoon, Kin Ming Cheng –who is also a substantial shareholder in SFCE as well as LDK Solar.

Shunfeng’s manufacturing unit has an estimated value of 4.7 billion CNY (US$683.1 million), the company said in its statement.

“Following the Possible Disposal, the Group plans to focus its business on the development of generation of solar power and operation of solar power plants, allowing the Group to reduce its upstream manufacturing business and focus on and deploy resources for its downstream clean energy business,” Shunfeng further explained.

A similar agreement with Asia-Pacific (China) Investment Management Ltd. was signed by Shunfeng in June 2016. At the time, the value of the transaction was estimated at around CNY 5 billion. SCFE acquired chinese manufacturer, Suntech in 2014 for $483 million

In its financial results for the first half of this year, Shunfeng reported a net loss of CNY 1,153.9 million ($171.6 million), down 252.3% from 327.5 million in the first half of 2017. It attributed the loss to an impairment loss on property, plant and equipment in the amount of CNY 674.4 million.

“Looking forward to the second half of 2018, we believe the relevant stakeholders will be more devoted to develop and utilize renewable energy,” it added in its outlook for this year, without providing additional figures.