Shunfeng reports USD-348m loss for 2016

China’s Shunfeng International Clean Energy Ltd (HKG:1165) last week posted a CNY-2.4-billion (USD 348m/EUR 327m) net loss for 2016 that was mainly driven by large impairment losses.

For comparison, the clean energy group booked a CNY-58-million net profit in 2015.

For 2016, Shunfeng reported “other losses” of CNY 1.72 billion against a net gain of about CNY 409 million in 2015. This includes an impairment loss of CNY 259.9 million in relation to its 63% stake in loss-making US photovoltaic (PV) cells manufacturer Suniva Inc, and a provision of CNY 221.5 million on the financial guarantee expenses in respect of that firm’s additional bank borrowing. In a previous statement Shunfeng explained that the pricing pressure on the solar module market, and lower price imports from southeast Asia to the US market have hurt Suniva's bottom line.

The group also incurred an impairment loss on goodwill of CNY 520 million and recognised a net loss of CNY 394.2 million related to doubtful debts for trade and other receivables.

When it comes to revenue generation, the group had a good year as its top line went up by 17.7% to CNY 8.28 billion. Revenue details per segment are available in the table.

The company sold 2,954.6 MW of solar wafers, cells and modules products for a 29.5% year-on-year jump. Sales of solar products accounted for 82.3% of the total revenue. Almost half of the revenue came from the sale of solar modules, rising by 2.2% to CNY 4.13 billion and 1,433 MW. Solar cell sales jumped by 65.2% to 1,465.6 MW.

(CNY 1.0 = USD 0.145/EUR 0.136)

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