The world’s largest solar power company has come up with a way to keep its profits flowing despite the financial crisis and economic slowdown.
In a report to shareholders, the company, owned by China’s Jilin Group, outlined plans to boost its cash flow from renewable energy and make more capital available to shareholders by selling off assets and buying back shares.
The company said the restructuring will help it balance its books and help its financial stability.
“The restructuring plans are aimed at improving the company’s cash flow, improving its financial condition, and ensuring that it can continue to service its debt and repay its creditors,” the company said.
“The restructuring plan includes the sale of its solar power plants, the acquisition of an additional solar power plant and the development of a new utility to provide power to the country’s electric grid.”
In a press release, Jillin Group said it had taken a risk to diversify its portfolio of renewable energy assets and expand its energy business.
“Jilin has a long-term, balanced energy business that can be used for any purpose, and it is our goal to invest our capital in the sector that will enable us to generate a high-quality return on our capital,” the statement said.
The solar power group said it would sell off assets to help pay down debt and to improve its financial position.
The news comes amid concerns about solar power companies’ ability to compete in an increasingly competitive marketplace.
A recent study by the US-based Energy Information Administration found that renewable energy companies accounted for only 5% of US renewable power generation in 2015.
Investors in solar power have reacted negatively to the company.
Shares in the company plunged 2% on Thursday, falling from $13.65 to $10.30, while Jilins shares slumped almost 6% to $30.23.