Akcome Anticipates 1.2 to 1.7 Billion Yuan Loss for 2019

CHANGCHUN, CHINA, February. 4, 2019 /PVTIME/ - On February 3, Jiangsu Akcome
Science & Technology Co., Ltd. (hereby referred to as “the company”) released
its performance forecast for 2019.

According to the forecast, the company is expecting a net loss attributable
to shareholders of between 1.2 to 1.7 billion yuan from January 1 to December 31,
2019. Profit for the same period in 2018 was 125.3425 million yuan.

During
the reporting period, the company actively responded to changes in industry
policies and proactively adjusted its strategic direction. After the sale of a 503MW
PV power plant in 2018, the company has continued to promote the sales of
photovoltaic power plants in order to optimize the asset-liability structure,
reduce the debt ratio, and improve corporate cash flow. At the same time, the
company has increased its high-efficiency cell and module manufacturing capabilities,
and deployed cells and module manufacturing factories in Changxing, Zhejiang
and Ganzhou, Jiangxi, embracing the era of grid parity. On top of improving its
manufacturing capabilities, the company has also been focused on penetrating the
overseas markets, and has achieved certain results. For the reporting period, the
company expects operating income to exceed 5 billion yuan, an increase of more
than 5% year-to-year. Operating income generated from manufacturing and other businesses
increased by more than 15% over the same period last year, and export sales
increased by more than 30% year-to-year.

However,
due to the influence of PV industry policy “5/31”, unclear renewable energy
subsidy policies, delayed subsidy payments, and the impact of being the guarantor
of Haida Technology Group, net profit for 2019 is expected to decrease significantly
compared to the same period for last year.

At
the end of the reporting period, the company’s guarantee balance for Haida Technology Group’s subsidiaries Jiangyin
Donghua Aluminum Technology Co., Ltd and Jiangyin Kema Metal Products Co., Ltd.
are 241 million yuan and 70 million yuan respectively. Presently, the operation
and production of the above-mentioned guaranteed enterprises have been severely
affected, and some loans and interests are in arrears. If during the guarantee period,
the aforementioned companies fail to repay, the company may assume the
corresponding guarantor responsibilities for these liabilities. The company has
hired a team of professional lawyers to handle the above matter, and parties
included in the matter are still in active negotiation to process the issue,
but no conclusive plan has yet been formed.

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