Hanergy Surges to Record Levels That its Directors Can’t Explain

Hanergy Thin Film Power Group Ltd., the Chinese solar manufacturer whose market value has eclipsed Sony Corp., said it doesn’t know why its stock reached a record.

Hanergy jumped 14 percent to HK$7.88 Thursday giving it a market value of HK$328.4 billion ($42.4 billion) more than the iconic Japanese electronics manufacturer Sony Corp.’s 4.23 trillion yen ($35.3 billion).

Hanergy’s board of directors said it “noted the increases in price and trading volume of the shares,” adding that they “are not aware of any reasons for these prices and volume movements,” according to an April 23 filing to the Hong Kong Stock Exchange.

About 61 percent of the company’s revenue comes from sales to its parent company Hanergy Holding Group and its affiliates. The Financial Times said in January that “unconventional practices” were behind the company’s rapid rise.

Hanergy’s Chief Executive Officer Dai Mingfang told the newspaper that the company is doing well even if it “makes other people suspicious” that its main client is also its main shareholder. Hanergy hasn’t said how much it expects to ship or install this year, a practice that stands apart from other solar companies.

Hanergy’s market value is higher than all other listed Chinese solar companies combined and more than six times the value of Tempe, Arizona-based First Solar Inc., the biggest producer of thin-film solar panels. It has risen more than sevenfold in the past year.

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