The solar power industry is currently in the grip of crisis with a glut in solar equipment that has put a downward pressure on prices.
The share fell to an all-time low of $1.16, as the company lowered its forecasts for the year citing lower prices and mounting debts. The company is also talking to strategic investors for a stake sale to raise funds.
“In the past few months we’ve had in-depth discussions with several companies and few of them have shown a significant interest in taking a strategic investment position in the company,” CEO Xiaofeng Peng said in a conference call with analysts. However the company is yet to receive an offer, he added.
There is consolidation taking place in the sector as smaller players are unable to survive the slowdown which has gripped the industry for the last couple of years.
The Chinese solar panels maker has already laid off about 5,000 jobs this year and is set to cut another 3,884 jobs in the second quarter.
Chinese companies in the sector have also been subjected to anti-dumping duties in the United States, while a similar action is being planned in Europe.
The company said it ended the second quarter with $296.2 million in cash and cash equivalents and $523.4 million in short-term pledged bank deposits.
On the other hand, Suntech Power Holdings Co., Ltd. (ADR) (NYSE:STP) shares jumped 6.40% to $0.926 and JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO) added 2.28% to $0.849.
Among the losers, JinkoSolar Holding Co., Ltd. (NYSE:JKS) slid 4.30%, ReneSola Ltd. (ADR)(NYSE:SOL) fell 5% and SunPower Corporation (NASDAQ:SPWR) declined 2.24%.