Shunfeng’s losses to exceed US$250 million in 2018

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
Diversified renewable energy firm Shunfeng International Clean Energy (SFCE) expects to report a loss in 2018 of approximately US$254 million, due to PV product ASP declines and impairment charges to its manufacturing operations. Imag: SFCE

Diversified renewable energy firm Shunfeng International Clean Energy (SFCE) expects to report a loss in 2018 of approximately US$254 million, due to PV product ASP declines and impairment charges to its manufacturing operations. 

SFCE said that it expected to losses of around RMB 1,707.0 million (US$254 million) for the full- year, compared to losses of RMB 67.2 million (US$10.65 million) in 2017, down from RMB 1,717.6 million in 2016.

The company had previously warned of losses for the first-half of 2018, totalling RMB 1,154 million (US$ 169 million). However, the company reported losses of RMB 741.2 million (US$110.43 million).

Similar issues were cited for the expected full-year loss as it did mid-year, which included the impact of module, cell and wafer ASP declines, wrapped around the China 531 New Deal. 

SFCE noted that the “solar product market continued to be intense, which resulted in a decrease of approximately 12.6% in the annual average selling price of the Group’s solar products for the Year 2018”
The company had previously warned that ASP decline at the end of the first half of 2018 had been 2.1% for PV modules and 17.6% for solar cells, compared to the prior year period.

This despite solar product sales were said to have increased by approximately 16.8%, compared to the prior year.

With business and financial conditions tough, SFCE noted in a financial statement: “In the light of the above and as the sales and gross profit of solar products have yet to show any significant improvement as of the date of this announcement, the Board resolved to recognise a provision for impairment of approximately RMB 777.7 million [US$115.9 million] for the property, plant and equipment and the goodwill of the solar products manufacturing segment.”

SFCE also noted that it didn’t expect its PV module manufacturing subsidiary, Wuxi Suntech Power Co to generate sufficient taxable income in the foreseeable future and had decided to recognise a reversal of deferred income tax assets amounting to approximately RMB 74.2 million [US$11.05 million] in 2018, which has been added to its expected income tax expense for the year.

The company added that it was still in the process of gathering information to finalise the annual results of the company for the year.

Read Next

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.
June 24, 2021
The cost of building and operating new utility-scale PV is now cheaper than running existing coal plants in China, India and across much of Europe. However, rising commodity prices could see PV projects become temporarily more expensive in the second half of 2021, according to BloombergNEF analysis.

Subscribe to Newsletter

Upcoming Events

Solar Media Events, Upcoming Webinars
July 29, 2021
Upcoming Webinars
August 19, 2021
At 9am (PT) | 6pm (CEST)
Solar Media Events
August 25, 2021
Solar Media Events, Upcoming Webinars
October 6, 2021