Latest News

Chinese solar company Akcome's subsidiary declares personal bankruptcy amid plunging rates, overcapacity

Chinese solar module producer Zhejiang Akcome New Energy Technology has applied for insolvency at one of its subsidiaries, citing a failure to repay its financial obligations, according to a Monday filing.

Zhejiang Akcome Photoelectricity Innovation's petition to get in bankruptcy restructuring was submitted by the parent business and was accepted by Changxing county court in eastern Zhejiang province, according to the filing with the Shenzhen stock exchange.

As of April 30, Zhejiang Akcome Photoelectricity Technology's properties amounted to 2.513 billion yuan ($ 346.4 million). and debts stood at 1.562 billion yuan, according to the filing.

The choice follows news of financial troubles at parent. business Zhejiang Akcome New Energy Innovation.

Trading of Akcome's shares was suspended from June 19 after. the share cost closed below 1 yuan ($ 0.14) for 20 successive. days and on June 22 the Shenzhen stock market stated it would. end the listing.

On June 14 the company, which was noted in Bloomberg New. Energy Finance's list of tier one global PV manufacturers for. the second quarter of 2024, stated it would suspend production of. some modules because of issues with its sales and supply chain.

Akcome also cancelled its plans last minute to field an. exhibition at the biggest annual market conference. It said in. a WeChat post on June 8 it was taking out of the International. Photovoltaic Power Generation and Smart Energy Conference and. Exhibition, which began on June 13, due to internal factors.

Costs for China's finished solar panels have plunged. following increasing oversupply, dropping below cost for lots of. manufacturers and squeezing revenue margins.

Market professionals state costs are not likely to see any healing. up until at least the end of 2024 or later. Some industry. participants believe a paring back of capability might begin to. rationalise prices by that point.

The variety of new solar production projects fell by more. than 75% year-on-year in the very first half of 2024, according to a. mid-year outlook discussion launched by the China Photovoltaic. Market Association (CPIA) recently.

Over 20 projects in the preparation or building and construction phase have. been cancelled or suspended, representing over 300,000 metric. lots of polysilicon capability, over 15 gigawatts (GW) of silicon. wafer capability, over 60GW of solar battery capability and over 20 GW. of module capability.

Utilisation rates at cell and module plants stand at around. 50-60% usually and a minimum of 6 companies have suspended some. operations at domestic factories, while 2 have actually suspended. production at facilities abroad, according to the figures. assembled by CPIA.

(source: Reuters)