- Li blames short sellers for sharp decline in H.K. shares
- Reasons for probe by market regulators called `unconvincing'
Hanergy Holding Group Ltd.’s Chairman Li Hejun said he has suffered a “huge” financial loss from the plunge and trading halt in the shares of the group’s Hong Kong-listed subsidiary.
The suspension has been a disaster to Hanergy Thin Film Power Group Ltd., the holding company, small investors and himself, Li said in the text of a speech released by the company on Tuesday to mark the 21st anniversary of the group’s founding.
“Even though I’ve suffered big financially from the sell-off, what hurts me more are the losses for our shareholders, investors, institutional investors and our employees.” Li said in the speech posted on the company’s website.
Hanergy’s shares have been in a trading halt since May 20 when they lost almost half their value, wiping out almost $19 billion in capitalization. Before that, Hanergy had surged more than sixfold within the space of a year.
Short sellers are to blame for Hanergy’s troubles and are the only beneficiaries of the company’s troubles, Li said, rejecting any notion that he was involved in short sales of Hanergy’s shares.
“I’ve never been involved in any form of trade of our stock and my team has never been involved either,” Li said. “As the majority shareholder, the group has never cashed in even one cent from our shares and has never sold even one share of our stock.”
The maker of thin film solar products, whose surge briefly made it the solar industry’s most valuable company, last month reported its first semi-annual loss since 2011 after suspending contracts with the parent and affiliates.
Hong Kong’s Securities & Futures Commission suspended trading in Hanergy indefinitely, saying the company failed to keep investors properly informed. Li, in the anniversary speech, said the SFC’s reason for the suspension is “unconvincing,” adding that Hanergy is still cooperating with the probe.
Hanergy had promised that by October it would roll out as many as five prototypes for cars powered only by solar panels. So far, the company has yet to make any further announcements.