Two contracts worth almost US$2 billion have been cancelled by Hanergy Thin Film Power Group.
The deals, for BIPV manufacturing equipment, were signed in March 2015 with a condition that 80% of the value be paid by the end of November. With the deadline passed, Hanergy has cancelled the agreements with neither party held responsible, according to documents filed with the Hong Kong Stock Exchange.
Mongolia Manshi Investment Group had agreed to buy 600MW of equipment of US$198 million with Hanergy providing “technical services” for a fee of US$462 million.
Baota Petrochemical Group was to purchase production line equipment totalling 1200MW for US$396 million with a service contract of US$924 million.
Both companies were to receive hefty share allotments as part of the agreements.
Hanergy TF Power shares remain suspended as the Hong Kong Securities and Futures Commission investigates the company’s finances and its relationship with the Hanergy Group.
Cancelled orders earlier in the year left Hanergy TF Power with first-half income in 2015 of US$25.8 million.
The company buffered its disappointing results by highlighting that other customers had reconfirmed their orders, including Mongolia Manshi Investment Group.