Hanergy Thin Film Power (Hanergy TF) remained highly dependent on parent company Hanergy Holding Group for revenue in 2014, gaining revenue for the sales of a small number of PV plants and limited revenue from thin-film sales to IKEA that were outside group transactions.
Hanergy TF reported total revenue of HK$9,615,028 (US$1.23 billion) in 2014, an increase of 193%, compared to 2013. Gross profit increased 109% to around HK$ 5,504,648 (US$709 million) but gross margin declined from 69% in 2013 to 24.6% at the end of 2014.
However, 62% (US$768 million) of 2014 revenue was from selling a-Si thin-film equipment and production plants to parent, Hanergy Holding Group.
PV power sales generated US$435 million in revenue in 2014, primarily five plants in China to newly formed Beijing Hongsheng for around US$232 million. Rooftop project sales totalled US$14.4 million, primarily projects such as the Honda Car factory rooftop project in China, which used Solibro CIGS thin-film modules.
Third party sales of thin-film modules generated only US$21.8 million in revenue.
On a regional basis, China therefore dominated revenue, while sales in the UK reached US$12.6 million, primarily via its deal with IKEA in the country. Sales in the US reached only US$3.3 million.
PV Tech previously disclosed that Hanergy TF was forced to repay HK$1,262,629,000 (US$162.8 million) to its parent company, Hanergy Holding Group on failure to meet 2013 a-Si thin-film module supply contracts.
However, Hanergy Holding Group still owes Hanergy TF a significant amount in respect to previous contracted equipment and manufacturing plants, although these plants have yet to ramp to volume production.