China Gogreen to shed PV module unit on tough market conditions

Oct 8, 2012 - China Gogreen Assets Investment (HKG:0397) on Sunday unveiled an agreement to dispose of its 65% stake in solar panel maker Henan Gogreen Energy in view of the tough solar market environment.

The company said that the disposal made it possible for the group to offload all of its investments in solar module making in order to mitigate the impact of the deteriorating conditions in the photovoltaics (PV) market, including oversupply and US anti-dumping tariffs on China-made modules.

Considering these facts, China Gogreen Assets decided to divest its wholly-owned subsidiary China Gogreen Energy Investment Holdings Ltd, which owns the 65% stake in Henan Gogreen, and a shareholder's loan of around HKD 390.3 million (USD 50.3m/EUR 38.8m) for HKD 50 million to Brilliant Tube International Ltd. The companies signed an agreement after the close of trading on Friday.

Henan Gogreen Energy made amorphous silicon thin-film PV modules before production was suspended in the first half of 2012. For the full year 2011 and the first half of 2012, China Gogreen Assets saw an impairment loss of HKD 471.5 million in relation to China Gogreen Energy and Henan Gogreen.

(HKD 10.0 = USD 1.290/EUR 0.993)

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