Hareon Solar’s sales collapse as company struggles to survive

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
Hareon Solar had suffered major financial issues before reporting a net loss in 2017 of approximately US$707 million after losses were reported every year since 2012. Image: Hareon Solar

China-based PV module manufacturer Hareon Solar Technology Co, has reported unaudited first half 2018 financial results, highlighting the collapse in the company in 2017, as losses mounted and was forced into major restructuring in 2018.

Hareon Solar had suffered major financial issues before reporting a net loss in 2017 of approximately US$707 million after losses were reported every year since 2012. Its PV manufacturing subsidiary was forced in to bankruptcy proceedings, senior management left including its CTO and the company has been fending off delisting.
 
It would also seem that Huajun International Group Limited, an investment holding company has acquired a major stake in the company and started a major restructuring of Hareon Solar, including the closure of some of the PV manufacturing operations and dispose of ‘inefficient loss-making assets’ and idled assets that are not required for production and current business operations, which also include some PV power plant projects, in order to reduce the company’s management costs.

Hareon Solar reported unaudited first half 2018 sales of RMB 581.99 million (US$85.3 million approx.), down 66.2% from the prior year period. 

Hareon Solar reported unaudited first half 2018 sales of RMB 581.99 million (US$85.3 million approx.), down 66.2% from the prior year period.

Net loss in the reporting period was RMB 637.2 million (US$93.3 million approx), as the company mainly sold PV modules without capital to continue operations before the Huajun International bailout. 

The company reported spending on R&D in the first half of 2018 at around RMB 5.7 million (US$836,602. Approx.).

The company had been a relatively high spender on R&D, which topped US$55 million in 2015, falling to just over US$26 million in 2017. In early June, 2018 several executives resigned from the company, including the Vice President and CTO of Hareon Solar Technology Co, Li Hongbo.

The company reported spending on R&D in the first half of 2018 at around RMB 5.7 million (US$836,602. Approx.).

Under previous management, Hareon Solar raked-up significant overdue debts, due to lack of capital and is facing a series litigation cases from suppliers and contractors. 

Read Next

July 29, 2021
Tracker and racking provider Arctech has delivered SkySmart II tracking system to a 575MW agriculture-sharing solar project located in Nangong City, Hebei Province, China.
July 23, 2021
China could install up to 65GW of solar this year, driven largely by a surge in demand for distributed solar installations, while average solar deployment could reach 90GW per year in the years leading up to 2025.
July 16, 2021
Finlay Colville, head of market research at PV Tech Research, explores the critical themes behind the solar industry’s transition from p-type to n-type cell production before previewing PV CellTech Online 2021.
July 15, 2021
Legislation that would ban the import of all products from China’s Xinjiang region into the US has taken a critical step forward, passing the US Senate.
July 13, 2021
Solar PV capacity in Asia Pacific could triple to 1,500GW by 2030, with China driving deployment and Indonesia set to be the region’s fastest-growing market, according to Wood Mackenzie.
PV Tech Premium
June 25, 2021
Yesterday the US government ended months of speculation by enacting a withhold and release order (WRO) on solar imports to the US linked to specific polysilicon providers in China suspected of having used forced labour. Liam Stoker analyses what we know so far and, crucially, what the industry still needs to know before it can proceed.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
August 19, 2021
At 9am (PT) | 6pm (CEST)
Solar Media Events
August 25, 2021
Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
BRISTOL, UK