Shunfeng guides for wider H1 loss

Chinese firm Shunfeng International Clean Energy Ltd (HKG:1165), or SFCE, expects to report a loss of CNY 450 million (USD 65.4m/EUR 55.2m) for the first half of 2020, widening from CNY 247 million a year earlier.

The company said earlier this week the difference is mainly due to an impairment loss of CNY 214 million it recognised in relation to the disposal of six company units. In addition, the prior-year result included profits from Jiangsu Shunfeng Photovoltaic Technology Co Ltd, a major solar subsidiary sold in September 2019.

In the past year, Shunfeng International has disposed of a number of subsidiaries, most operating solar power plants in China, to improve its balance sheet position by reducing debt.

The company expects to publish its interim report by the end of August. It is preparing it with its new auditor, BDO Ltd, appointed at the end of July after Deloitte Touche Tohmatsu resigned. The reason given by the accounting giant for its decision to leave SFCE after nine years is the “professional risk associated with the multiple uncertainties [which] exist relating to [the] going concern of the Group and the level of audit fees.”

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