■ Hareon Solar’s sales collapse as company struggles to survive

(September 3, 2018/pv-tech.org)

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.

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 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.

■ Maharashtra Discom issues EOI for solar manufacturing plant

(September 3, 2018/pv-tech.org)

Maharashtra State Power Generation Company (Mahagenco) has invited expressions of interest (EOI) for setting up a solar manufacturing plant in the Indian state, using any type of cells and modules.

The integrated factory will be located on land provided by Mahagenco. The company wants the facility to provide solar equipment for at least 50-60% of its 2,500MW solar requirement.

The prospective manufacturers will be allowed to form joint ventures or consortiums with Mahagenco. Existing manufacturers of solar cells and modules, who intend to set up integrated facilities and are planning to expand their capacity, will also be eligible to bid under this scheme.

Mahagenco will shortlist bidders for the project based on technical and financial feasibility, the bidder’s technical and financial capability, and the bidders' offered percentage in the project to Mahagenco.

The deadline for EOI submissions is 29 September this year.

Mahagenco has the highest overall generation capacity and the highest thermal installed capacity amongst all the state power generation utilities in India. In terms of installed capacity, it is the second highest generation company after state-run giant NTPC.

■ SECI reduces 5GW solar manufacturing tender to 3GW

(September 3, 2018/pv-tech.org)

The Solar Energy Corporation of India (SECI) has reduced the manufacturing component of its 5GW solar manufacturing / 10GW of solar deployment tender to just 3GW.

Media reports had cited officials suggesting that the manufacturing capacity could be reduced several weeks ago, but SECI has now confirmed the reduction and changed the title of its tender.

The original tender drew much interest at the EOI stage but after a pre-bid meeting, it became clear that interested parties wanted the manufacturing component reduced to make the prospect more viable and attractive. Indeed, consultancy firm Bridge to India had calculated that just four firms were capable of the capital outlay necessary for such a huge investment.

Analysts have also said that the 10GW of solar capacity would have been tendered in any case. The manufacturing addition was simply the latest attempt by the government to start cultivating a domestic PV manufacturing boom, ahead of its imposition of a safeguard duty on imports from China, Malaysia and developed countries, which is temporarily on hold.