Chinese firm Shunfeng International Clean Energy Ltd (HKG:1165) said on Monday it expects, based on preliminary accounts, to report a much wider net loss of about CNY 1.7 billion (USD 254.4m/EUR 224m) for 2018.
The loss in 2017 stood at CNY 834.1 million. It has expanded mainly due to the company’s decision to recognise a CNY-777.7-million impairment provision on property, plant and equipment and goodwill of its solar products manufacturing segment. This followed a 12.6% drop in the annual average selling price of Shunfeng’s solar products last year.
The impairment provision is subject to review.
The company also saw its distribution and selling costs and income tax expenses increase in 2018 as compared to 2017. On a more positive note, it noted that the solar sales volume in 2018 has grown by 16.8%.
Shunfeng will publish results for 2018 before the end of the month.