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GCL secures another $140m of public money to pay down debt

Polysilicon maker GCL-Poly was among a bevy of Hong Kong-listed companies who suspended trading in their stock this morning after missing the deadline to publish their annual reports for 2020.

Having already postponed release of its figures from Monday until yesterday, GCL today announced it expects to file its annual report today. Under Hong Kong Stock Exchange rules, annual reports must be published no later than three months after the 12 months in question.

GCL today said it expects its shares to resume trading on Wednesday.

The company’s heavily-indebted GCL New Energy solar project business banked another RMB928 million (US$141 million)–and wiped a further RMB1.29 billion of liabilities off its books–by selling off six solar projects with a total generation capacity of 321 MW to state-owned Three Gorges Asset Management Co Ltd.

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Although Three Gorges obtained the projects at an estimated RMB151 million (US$23 million) less than their book value, the bundle included the Kaifeng Huaxin project company which has installed only 20 MW of a planned 120 MW generation capacity. That project company drained RMB10.2 million from parent company GCL New Energy’s coffers over the last three years.

GCL said it would explore further opportunities to sell off its solar project capacity to Three Gorges.

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Source: pv magazine