Hanergy Thin Film returns to profit with sales to Macrolink

[LONDON] Hanergy Thin Film Power Group Ltd, the Hong Kong solar company whose shares have been suspended for more than a year, returned to profit in the first six months of the year as revenue rose, buoyed by two customers that account for 78 per cent of its sales.

The maker of thin-film solar equipment posted net income of HK$821 million (S$144 million) compared with a loss of HK$59 million in the same period last year, according to a statement to the city's stock exchange. It said that sales rose to HK$3.3 billion from HK$2.1 billion a year ago.

The surge in revenue came from Shandong Macrolink New Resources Technology Ltd and affiliates of its Hanergy's parent company, which is controlled by founder Li Hejun. Mr Li quit the board of the thin-film solar maker in May to improve corporate governance.

The results released Tuesday after regular business hours in Hong Kong capped a tumultuous year for Hanergy after its stock plunged, regulators raised concerns about market manipulation and a partnership to sell panels through the furniture retailer Ikea fell apart.

Hanergy's revenues were helped by higher rooftop solar-power system sales and income from panel production from the parent company, Hanergy Holding Group Ltd, and from Macrolink. Sales to Macrolink rose 14 per cent from a year ago.

Hanergy remains under investigation by Hong Kong's market regulator after the company's shares plunged 47 per cent in a single day in May 2015, leading to the stock suspension. In the year before the decline, the shares surged more than sixfold, riding a wave of enthusiasm fueled by Mr Li's promises for what the future held for solar - and thin-film technology that Hanergy sells.

Hanergy in March posted its first annual loss since 2009 as revenue plunged, and auditors expressed doubts about the company's ability to stay in business.

Mr Li, the man at the centre of last year's rise and fall of the company, stepped down as chairman in May. He is no longer a member of the board.

BLOOMBERG