From: "Rebecca Van Nichols" <rvan@tnag.net>
Date: Apr 2, 2016 11:47 AM
Subject: Solar Firm Sells Stock at 95% Discount After Losing Ground
To: <mbannerman@arcstarenergy.com>
Cc:
Solar Firm Sells Stock at 95% Discount After Losing Ground
Chinese Solar energy firm Hanergy Thin Film Power Group, once the solar power company with the largest market value in the world, is falling dramatically in both market confidence and stock price. Li Hejun, the chairman of the company and once China's richest man, is selling his own stock at a 95 percent discount, according to a report from Dec. 28.
Market analysts say that Li's sale shows that the company is in bad shape. Li is selling a 6 percent stake in the company at 0.18 yuan ($0.03) per share.
Hanergy has been under investigation by Hong Kong's Securities and Futures Commission since May, when red flags were raised regarding the company's valuation and from where it was getting its revenue. In July, the investigators said that they had found "connected transactions" that had been cause for alarm. No further details were forthcoming.
The loss of faith in Hanergy – and its accompanying stock drop of 47 percent – took place several weeks before a larger market rout in China and investigations into several other leading financial entities in the country.
Once valued at over HK $300 billion ($380 million), Hanergy's success propelled Li Hejun to the position of the richest man in China in February.
According to its website, Hanergy sells thin-film solar panels and produces them from R&D to manufacturing, including the production of PV cells and PV system integrated solutions. It claims it has the capacity to add 4 billion kWh of electricity to China.
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