Hanergy Holding Group, the parent of Chinese solar company Hanergy Thin Film Power Group, has eliminated some subsidiaries and cut staff, media reports said on Monday.
An employee of Hanergy Holding Group who declined to be identified confirmed that the parent company had eliminated two of its seven subsidiaries, news portal jiemian.com reported on Monday.
One was the subsidiary that specialized in advanced industry and product development, while the other was a group branch in North China's Inner Mongolia Autonomous Region, according to the report.
"The parent company definitely cut staff, but the figures aren't clear," a senior employee of Hanergy Holding Group told the Global Times on Monday on condition of anonymity.
She declined to discuss the situation of the subsidiaries, and Hanergy Holding Group declined to comment when contacted by the Global Times.
In an online statement on August 16, Hanergy Thin Film Power announced a restructuring plan with the Hanergy Holding Group, and the plan was presented to the Hong Kong Securities and Futures Commission.
It was wise to restructure and cut employees given the tough situation Hanergy is facing, Lin Boqiang, director of the Center for Energy Economics Research at Xiamen University, told the Global Times on Monday.
Hanergy has to save itself, as its situation is worse than other solar companies, Lin noted.
The company aims to restructure by drastically reducing or ending all or some of the affiliated transactions with Hanergy Holding Group and its subsidiaries, according to Hanergy Thin Film Power's statement.
The statement showed that affiliated transactions tumbled to 161 million yuan ($25.2 million) in the first six months of this year, a decrease of 90 percent from the first half in 2014.
The Hong Kong-listed company said that there were losses in revenue and net profit for the first half of this year due to the fact that the company suspended contracts with its parent company.
Hanergy Thin Film Power has canceled two deals with the parent company this year, worth a total of 17.3 billion yuan, jiemian.com reported.
