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The last rites play out in Hanergy’s multi-billion dollar House of Cards Scam

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Will Hanergy explode now

We at Greenworldinvestor have repeatedly pointed out the absurdity of the multibillion dollar valuation being given to Hanergy, by the HK stock market. The high valuation given to Hanergy’s stock made no sense and after an investigation by the HK authorities the stock was suspended. Hanergy had in the past acquired failed thin film companies in the West at dirt cheap prices, as  sharp improvements in crystalline silicon technology / manufacturing made thin film technology unviable.

Hanergy had shown large revenues and orders by selling thin film equipment to other Chinese companies, many of which were related parties. This allowed the company to show a huge topline and bottom line growth on paper, without any basis in reality. This was always a con game, apparent to anyone with a modicum of common sense. After almost 6 months of the stock suspension, the final end game has arrived. The company announced a large 600 MW order from a nondescript Chinese company Shangdong Macrolink New Reserources, worth more than $500 million.

Note the deal terms were totally out of the normal structures and included share issue by Hanergy. There were a similar number of suspicious contracts with customers and have been cancelled. It is again pretty apparent that these were non-serious customers. Selling thin film solar panels has proved to be extremely tough with massive number of thin film bankruptcies in the last few years. To assume new upstarts to become large thin film panel producers using Hanergy’s suspect equipment always smelled of a fraud and conspiracy of looting retail investors.

Hanergy was valued at $39 billion at peak prices, while it would be hard for the company now to get even one-thousandth of that value. The whole House of Cards is now collapsing as expected. It remains to be seen if the Chinese legal system takes action against the conspirators and fraudsters or they will go scot free.


Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to

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