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      China's solar power companies forecast losses

      2013-02-06 15:14 Xinhua     Web Editor: Gu Liping comment

      More than 40 percent of China's listed PV (photovoltaic) companies forecast losses for 2012, raising delisting concerns amid efforts to restructure the industry.

      A total of 13 out of 32 listed companies that have core business in the PV industry forecast losses for 2012 in their recently released financial reports, while another 12 said they will likely see profit declines.

      Of the 13 companies, Shanghai-based Chaorisolar reported losses for the second time following losses in 2011, while the remaining companies posted losses for the first time.

      According to China's delisting rules, a company that reports losses for three consecutive years will see its stock trading suspended. If losses continue into a fourth year, the company can be delisted.

      The central government said in December that it is looking to reshuffle the PV industry by encouraging mergers and acquisitions and phasing out outdated capacity.

       

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