Shunfeng posts USD 69m loss for H1 2020

Author: Ken Teegardin. Licence: Creative Commons, Attribution-ShareAlike 2.0 Generic.

Chinese firm Shunfeng International Clean Energy Ltd (HKG:1165), or SFCE, reported a net loss of CNY 468.6 million (USD 68.7m/EUR 57.8m) for the first half of 2020, widening from CNY 289.8 million a year earlier.

The bigger deficit was mainly due to an impairment loss of CNY 214.4 million the company recognised on assets classified as held for sale.

The table contains more details on Shunfeng’s performance.

Results in CNY million from continuing operations	H1 2020	H1 2019
Revenue from solar power generation	580.25	688.15
Revenue from manufacturing and sales of LED	221.77	147.5
Gross profit	405.03	377.92
Adj. EBITDA	469.38	696.54
EBITDA	199.91	613.29
Net loss	(468.58)	(289.84)

In mid-2020, Shunfeng’s equity attributable to owners of the company was a negative CNY 1.39 billion and its current liabilities exceeded its current assets by CNY 4.46 billion. Whether it will be able to continue as a going concern would depend upon the full collection of proceeds from the already announced deals for the sale of solar parks in China, more disposals, successful negotiations with lenders and creditors, and new financing resources, the interim report says.

(CNY 10 = USD 1.46/EUR 1.23)

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