Hanergy Thin Film says business operations remain normal

Hanergy Thin Film Power Group Ltd (HKG:0566) said Thursday there is no existing allegation by the Hong Kong Securities and Futures Commission (SFC) against it at this point, and noted that all its business operations are normal.

The company is being investigated for market manipulation, as announced by the regulator in end-May. So far, the SFC has not accused the firm or its directors “of any wrongdoing or impropriety”, according to the statement.

Still, on July 15 SFC directed the Hong Kong Stock Exchange to suspend trading in the shares of the company. If necessary, Hanergy Thin Film intends to challenge the decision judicially, it noted.

In the meantime, the Chinese firm blamed the significant price fluctuation of its stock from May 20 on speculations of a terminated building integrated photovoltaics (BIPV) production line equipment sales contract.

Controlling shareholder Hanergy Holding Group terminated an order for 900 MW of thin-film solar BIPV panel module assembly lines in mid-June. Yesterday, Hanergy Thin Film said it has received written confirmations from two out of three other clients that the previously agreed supply contracts remain valid.

Hanergy Thin Film makes equipment and turnkey production lines for amorphous silicon thin-film PV modules and also develops solar projects in China, the US and Africa. In the 12 months to May 20, its stock price had gained over 550%.

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