Sunpower Group (SGX:5GD) expects to report a net loss for the third quarter ending Sept. 30, after setting aside an 80.1 million yuan provision for bad debt on previously recognized biomass power subsidies, according to a Monday filing on the Singapore Exchange.
The anticipated one-off charge stems from reduced subsidy recoverability related to two biomass projects in China.
The projects, in Xintai City, Shandong Province, and Tongshan District, Jiangsu Province, faced subsidy shortfalls from 2021 to 2023 due to reduced payments from subsidiaries of the State Grid Corporation of China.
The company expressed low confidence in recovering the overdue subsidies and deemed the provision necessary to reflect potential losses accurately.
Price (SGD): S$0.31, Change: S$-0.015, Percent Change: -4.62%
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.