United PV Seeks $64.5 Million From Hareon for Contract BreachBloomberg News
Most Hareon projects don't meet conditions: United PV
United PV may seek a refund via arbitration, spokesman says
United Photovoltaics Group Ltd., a Hong Kong-listed solar-farm operator, is asking Hareon Solar Technology Co. to return HK$500 million ($64.5 million) it paid in advance for buying 930 megawatts of solar-power projects as the plants don’t meet acquisition conditions.
Under an agreement signed by the two companies in May, the acquisition was dependent on conditions including starting operations by Dec. 10 and being connected to the grid.
Only the 30-megawatt Xinjiang Keping project was connected to the grid on Dec. 26, said Xue Jiancong, director of public relations at United PV’s parent China Merchants New Energy Group Ltd. There’s no information on the remaining projects from Hareon, he said. Four calls to Wen Wen, a Hareon spokesman, on Thursday went unanswered.
Hareon, which makes solar panels and develops solar-power projects, said on the Shanghai Stock Exchange website Dec. 29 that United PV’s projects are being completed and some of them have met delivery conditions.
United PV, which is targeting installing a 1 gigawatt of capacity this year, is discussing project acquisitions with other partners, Xue said. The company may try to seek a refund from Hareon through arbitration, he said.
In April, the Shanghai stock exchange placed Hareon’s stock on watch for possible delisting if it reports a loss for the third consecutive year in 2015.
— With assistance by Feifei Shen