Chinese polysilicon maker and project developer GCL-Poly sold off another 378 MW of solar park generation capacity at the weekend, to drum up almost RMB1.04 billion (US$161 million) – albeit at a book loss of RMB114 million (US$17.6 million) – to pay off debts. The two transactions also removed a further RMB1.89 billion (US$292 million) of liabilities from GCL's books.
The company managed to offload two expensive solar project companies on Friday by rolling them into a sale package of seven entities with a total generation capacity of 229 MW which was sold to State Power Investment Corp (SPIC) business Guizhou West Power Construction Co Ltd.
The Heqing Xinhua and Menghai GCL units sold as part of the deal had installed only 47 MW of an intended 130 MW, after incurring infrastructure expenses related to the original scale of the developments. Both solar project operating companies were also hit by bigger-than-usual expenses as they were taxed at a higher rate after being planned on cultivated land, GCL told the Hong Kong Stock Exchange on Friday.
That sale is expected to book heavily-indebted GCL a RMB781 million (US$121 million) windfall, at a book loss of RMB117 million, and to remove RMB1.2 billion (US$186 million) of liabilities.
The transaction was announced a day after GCL reported the sale of another seven PV parks, with a total generation capacity of around 149 MW. The earlier disposal, to SPIC subsidiary Chongqing Lvxin Energy Development Co Ltd, will net GCL a RMB3.11 million (US$481,000) profit on its investment by securing a RMB355 million windfall, and will also reduce the seller’s liabilities by RMB688 million.
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