Chinese Solar Firm Akcome’s Subsidiary Declares Bankruptcy

  • Chinese solar module producer Zhejiang Akcome New Energy Technology has filed for bankruptcy at one of its subsidiaries.
  • On June 14, the company was listed in Bloomberg New Energy Finance’s list of tier-one global PV manufacturers for the second quarter of 2024.

Chinese solar module producer Zhejiang Akcome New Energy Technology has filed for bankruptcy at one of its subsidiaries, citing an inability to repay its debts, according to a Monday filing.

According to the filing with the Shenzhen stock exchange, Zhejiang Akcome Photoelectricity Technology’s petition to enter bankruptcy restructuring was submitted by the parent company and accepted by Changxing County Court in eastern Zhejiang province.

According to the filing, as of April 30, Zhejiang Akcome Photoelectricity Technology’s assets totalled 2.513 billion yuan ($346.4 million), and debts stood at 1.562 billion yuan.

The decision follows news of financial troubles at parent company Zhejiang Akcome New Energy Technology.

Trading in Akcome’s shares was suspended on June 19 after the share price closed below 1 yuan ($0.14) for 20 consecutive days, and on June 22, the Shenzhen stock exchange said it would terminate the listing.

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

Akcome also cancelled its plans at the last minute to field an exhibition at the largest yearly industry conference. It said in a WeChat post on June 8 that it was pulling out of the International Photovoltaic Power Generation and Smart Energy Conference and Exhibition, which started on June 13, due to “internal reasons”.

Prices for China’s finished solar panels have plunged following increasing oversupply, dropping below cost for many producers and squeezing profit margins. Industry experts say prices are unlikely to recover until at least the end of 2024 or later.

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