Is Suntech Power Holdings Co., Ltd (NYSE:STP) Getting a Handout?

Posted by Ryan Mandell October 1, 2013 0 Comment 710 views

The Chinese solar power industry has been struggling for a long time now, primarily due to dismal demand and a huge overcapacity. On Sunday, the Ministry of Finance in China announced that solar power manufacturers will be offered tax breaks. This move comes at an opportune moment and will go a long way in providing the much-required support to the flailing industry.

The welcome refund

In a statement on its official website, the ministry said that the solar power product manufacturers will all receive 50% refunds of VAT’s with immediate effect. The NDRC had also provided some subsidies for solar-power stations in August-end. The entire industry is going through a turbulent phase and most of the companies like Suntech Power Holdings Co., Ltd (NYSE:STP) are buried deep in debt.

Fleeing the sinking ship

David Kind, Suntech Power Holdings Co., Ltd (NYSE:STP)’s Chief Executive Officer had exited from the company in mid-September. This was right on the heels of the exit of 3 other directors of the company that has been struggling with debt restructuring plans. The company’s Wuxi Suntech unit was dragged into insolvency proceedings by its Chinese lenders after the company defaulted on $541M in bonds. It has been faced with a huge buildup of inventory and its troubles seem like they are never going to end.

Monday’s trading

Suntech Power Holdings Co., Ltd (NYSE:STP) is a solar-energy company. In Monday’s trading session, Suntech Power Holdings Co., Ltd (NYSE:STP) rose by 25.93%. The company’s shares opened at a price of $1.33, climbed to an intraday high of $1.70 which was also the closing price for the day. Approximately 16.16 million shares were traded on Monday while an average volume of 2.87 million shares were traded over 30 days. The 52-week low of the shares is $0.30 while the 52-week high is $1.99. The company has a market capitalization of $307.43 Million.

About Ryan Mandell

Ryan Mandell is our senior staff writer covering the White House for Political Report, Ryan also coordinates with the main newsroom news items and contributing write-ups on cultural, social and political activities. Ryan holds an undergraduate degree in journalism, a Doctorate in international relations and a Master Degree in mass communications with an emphasis in print journalism. Ryan also covered the International Society of Social Defense congress in Spain in 2007 and taken part in the Global Forum on economic policies

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