Jetion Solar Holdings has postponed its listing on the Hong Kong Stock Exchange. The Chinese solar cells and modules producer has taken this decision because of volatile economic conditions and the weak stock market.
Alternative Investment Market-quoted Jetion applied for admission of its shares to the Hong Kong Stock Exchange in March, with the listing process expected to be completed by the end of the summer. Jetion planned to retain its AIM quotation and wanted to raise its profile in China and the Asia Pacific region.
The company’s revenues jumped from $55.9 million to $146.7 million during the first half of 2010, while there was a more modest 50% improvement in H1 profit to $4.8 million. That was mainly due to a foreign exchange loss of $13.2 million.
Domestic sales in China fell - a result of most of the firm’s 83MW of solar production being exported. The third quarter saw the installation of two new lines, which are now working at full capacity, and another two lines will be installed by the end of October. The average solar efficiency rate rose from 17% to 17.5%.
Jetion’s gross margins improved from 18.1% to 19.1% during H1 2010. However, wafer prices are rising, and the firm therefore expects its margins to decline.
At the end of June Jetion had net debt of $23.4 million, excluding the $70.7 million of pledged bank deposits relating to security for loans and forward foreign exchange contracts. The borrowings would have been higher had the trade creditors not increased significantly.
Jetion sought to raise cash in joining the Hong Kong market, saying that additional funds were needed in order to finance the growth of the business. The current figures indicate that the company will still require that extra cash if it is to continue its rapid growth.
Market: AIM
Symbol: JHL
Price: 63.5p
12 month high/low: 104p/50p
Market cap: £47.8m
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