Jun Yang Solar Power Investments Ltd., a Hong Kong solar manufacturer with a separate money-lending business, expects a gain of at least HK$500 million ($65 million) from its investment unit.
The gain detailed in a filing to the Hong Kong stock exchange on Tuesday is more than quadruple the HK$121 million it recorded gain from finance in the same period a year ago and stronger than the HK$350 million it had for the whole of 2014. The earnings are due to be reported in August.
Jun Yang develops, builds and operates thin-film solar power plants across China and entered the money-lending business in 2012, according to its annual report. The gain from its investment unit will lead to “a significant rise in profit,” the company said in the statement signed by its Chairman Bai Liang, who controls 9.7 percent of the stock, according to data compiled by Bloomberg.
The company owns 32 subsidiaries, many of which are involved in finance. In October, it bought Lucky Securities Co., which trades on the Hong Kong stock exchange. In recent reporting periods, the company has booked gains relating to the fair value of “held-for-trading investments” it has on its balance sheet, which are mostly shares of companies listed in Hong Kong.
Jun Yang’s shares tripled this year, peaking on June 2, then tumbled 61 percent, mirroring the drop in Chinese stock indexes such as the Hang Seng. The company had profit for 2014 of HK$253 million, including the HK$350 million gain, on sales of HK$63 million last year.
Two calls to the office of its investor relations director Liu Guangdian went unanswered.