State-owned Chinese PV developer Panda Green today revealed more details of where some of the RMB1,022 million (US$148 million) it spent on solar project development rights in 2017 ended up.
The solar company, which was bailed out by Beijing Energy Group in February, today finally published its accounts for 2019. The figures were held up for more than three months after the previous auditor refused to sign them off because of the project development deposits which were paid for solar farms which never took shape, as reported by pv magazine.
With Pricewaterhousecoopers (PwC) on board as auditors, the figures have finally been signed off and the London-based accountant even managed to reduce the reported total comprehensive loss for last year by RMB103 million, from RMB3.83 billion to RMB3.73 billion.
With the amount written off in relation to those missing deposits rising RMB72 million to RMB1,094 million during the intervening period, PwC found the savings with adjustments such as reducing expenses from continuing operations by RMB19 million, among other measures. The auditor also revised upwards the recoverables, contract assets, deposits and pre-payments section of the balance sheet by RMB1.27 billion, to RMB2.36 billion.
On the matter of those missing project development rights deposits, Panda Green’s new management also expanded on the earlier findings of an investigation into the affair. Of a total HK$686 million (US$88.5 million) paid to the New Energy Exchange Ltd (Nex) business which is a shareholder of Panda Green and has close links to the developer, some HK$570.9 million was “purportedly” used to buy Panda Green shares via intermediaries; with HK$12.7 million ending up in the personal account of a “former director” – previously named by KMPG as former CEO Alan Li; HK$80 million was used to buy solar project components; and HK$22.4 million was kept by Nex.
Around 90% of a further RMB500 million paid by Panda Green to Szzy for solar project acquisitions was also apparently used instead to buy Panda Green shares via intermediary financial arrangements and companies connected to the developer’s “shareholder H,” with the HK$50 million balance controlled by a Nex business.
Panda Green’s new owners also said they are also pursuing shareholder Nex for RMB303.7 million which the developer reportedly paid on behalf of the company to acquire part of a solar project development limited partnership that was one-third controlled by Panda Green.
The audited accounts admit the company has had no response from the intermediary businesses suspected of being used to buy its shares and said the impairment shouldered for lost project development rights deposits had risen to RMB1,094 million as a result of the outstanding monies owed by Nex.
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