(Yicai) Jan. 6 -- Fengfan Power Equipment said its Cambodian client will pay USD29.7 million of the USD42.4 million it owes the Chinese power equipment maker with property in the Southeast Asian country along with some brand-new solar modules in its warehouse.

Solar Long PV-Tech Cambodia plans to transfer two industrial land plots and buildings on them in Sihanoukville worth USD24 million and new solar modules worth USD5.7 million to Fengfan's local unit to settle outstanding payments for solar products it bought, the Chinese company announced late on Jan. 3.

Fengfan supplied solar wafer and cell products to Solar Long PV worth USD104.6 million between October 2023 and last March but was only paid about 60 percent in cash, with the rest still outstanding, it said.

Fengfan will actively seek to recover the remaining USD12.75 million of accounts receivable, the Changshu-based company added.

The agreement is expected to reduce Fengfan's bad debt risk, according to the firm. But due to the overall weakness in the photovoltaic market and US anti-dumping tariffs of as high as 271 percent on solar products made in Southeast Asia, it may be difficult to recover the outstanding USD12.75 million, it said.

Fengfan mainly produces transmission tower parts for power grid operators. It also supplies solar silicon wafers, cells, and modules to new energy clients. Revenue from its solar business reached CNY494 million (USD60 million) in 2023, accounting for about 16 percent of its total annual income that year, according to the firm’s annual financial report.

Shares of Fengfan [SHA: 601700] ended unchanged at CNY4.24 (58 US cents) apiece in Shanghai today, after earlier dropping by as much as 4.7 percent. The stock shed 9.3 percent over the previous year.

Editor: Martin Kadiev