These 20 photovoltaic companies are in danger

Under the frenzy of capacity expansion, an unprecedented "involution" has spread throughout the photovoltaic industry, leading to a major reshuffle, and many companies are now under tremendous pressure.

Running a business is so cruel! In a cyclical industry like photovoltaics, there have been countless exciting triumphs and heartbreaking failures. Now, the reshuffle of the photovoltaic industry has entered deep waters, greatly testing the management capabilities of enterprises.

The intense fluctuations and variables in the industry competition in the past few years have put some photovoltaic companies in "danger". Some companies are already insolvent with high debts; some companies have suffered continuous and substantial losses and are on the verge of delisting; some companies have exhausted their cash flow and their production and operation are unsustainable, leading to production suspension; some companies have incurred losses upon production, and major projects have been suspended or indefinitely postponed; of course, there are also companies with internal management chaos and conflicts. Based on various dimensions, I have found that the following 20 photovoltaic companies are facing enormous pressure and risks in their operations.

[1] ST Aikang: With 31 consecutive one-word limit-down trading days, the stock price of ST Aikang (002610.SZ) has plummeted by 78.98% during these 31 trading days. As of the close on June 18, Aikang's stock price fell to 0.37 yuan/share, almost sealing its fate of delisting. (According to Article 9.2.1 of the "Rules for Stock Listing of the Shenzhen Stock Exchange," if a company's closing price is below 1 yuan for 20 consecutive trading days, its stocks will be delisted by the Shenzhen Stock Exchange.)

Aikang Technology was established in 2006. In 2023, the company's strategic direction clearly focuses on high-efficiency manufacturing, focusing on two core businesses: high-efficiency manufacturing of new energy and smart energy services. Its new energy manufacturing development focuses on high-efficiency heterojunction cells and components, supported by frames and brackets. Through the layout of multiple high-efficiency bases in Suzhou, Huzhou, Ganzhou, Zhoushan, and Wuxi, it plans to achieve an annual production capacity of over 40 GW of high-efficiency solar cells and components within five years, striving to become a leader in the high-efficiency heterojunction field.

However, based on past strategies and execution capabilities, the actual progress is far below expectations. For example, according to the 2020 annual report: Aikang Technology planned "6GW heterojunction batteries + 6GW components" in Huzhou, Zhejiang; "6GW heterojunction batteries" in Ganzhou, Jiangxi; and "6GW heterojunction batteries + 6GW components" in Taizhou, Jiangsu. By the end of 2021, it was expected to reach a production capacity of 4GW, becoming the world's largest heterojunction producer; however, by the end of 2023, it only had a production capacity of 3.2GW HJT batteries, far less than previously expected.

This may be partly due to its relatively weak capital strength. Financial reports show that as of the end of March 2024, Aikang Technology's asset-liability ratio reached 80.09%, with monetary funds of 1.569 billion yuan, while its total short-term interest-bearing liabilities amounted to 3.405 billion yuan, resulting in a funding gap of 1.836 billion yuan.

Aikang Technology has suffered losses for three consecutive years. From 2021 to 2023, its total losses reached 2.066 billion yuan. In the first quarter of 2024, Aikang continued to lose 213 million yuan, down 753.50% year-on-year. "In 2023, the global photovoltaic newly installed capacity increased significantly, and the photovoltaic market's demand for N-type advanced products gradually became mainstream. As various segments of the photovoltaic industry chain expanded their production capacity, resulting in intensified competition, the photovoltaic industry chain prices fluctuated downward. During the reporting period, component prices continued to fall, and fell sharply in the third and fourth quarters, severely affecting the company's product sales revenue and gross profit. Some orders had sales prices below costs, also leading to increased inventory write-downs at the end of the reporting period. Also, due to the rapid iteration of N-type technology products, the industry's production capacity faced structural adjustments. To cope with the drastic changes in the market, the company upgraded its existing production lines, disposed of some component equipment, and wrote down asset impairment losses for PERC cells and component lines at the end of the reporting period." Aikang Technology stated.

Latest news: On June 12, Suzhou Aikang Optoelectronics Technology Co., Ltd. (hereinafter referred to as "Suzhou Aikang Optoelectronics"), a wholly-owned subsidiary of Aikang Technology, implemented a temporary shutdown of the company's high-efficiency solar cell component production line. The shutdown began on June 12, 2024, and is expected to last no more than 3 months. Subsequent resumption of production will be disclosed in a timely manner.

According to the disclosure, in 2023, Aikang Optoelectronics' annual revenue reached 3.004 billion yuan, accounting for 64.44% of Aikang Technology's operating revenue.

On the same day, Aikang Technology and its actual controller, Zou Chenghui, received a "Notice of Case Filing" (No. ZJLAZ 01120240018 and ZJLAZ 01120240019) issued by the China Securities Regulatory Commission. Due to the suspected violation of information disclosure regulations by the company and its actual controller Zou Chenghui, according to laws and regulations such as the "Securities Law of the People's Republic of China" and the "Administrative Penalty Law of the People's Republic of China," the China Securities Regulatory Commission decided to file a case against the company and its actual controller Zou Chenghui.

[2] Wuxi Suntech: Wuxi Suntech was founded in 2001. Under the leadership of its founder, Shi Zhengrong, Wuxi Suntech once became a leading photovoltaic company in China. At its peak, for example in 2011, Suntech's operating revenue reached 19.826 billion yuan, far exceeding its competitors such as Trina Solar and JinkoSolar during the same period.

However, after multiple trials of financial and industrial crises, Wuxi Suntech eventually experienced losses, delisting, and restructuring, and Shi Zhengrong eventually left the company he founded.

After a long period of market silence, Wuxi Suntech recently changed its chairman three times in two months. On December 11, 2023, Wuxi Suntech officially announced the addition of Wu Fei as its chairman. The former chairman, He Shufan, was appointed as the general manager and director.

Thus, in its 22 years of existence, Wuxi Suntech has changed its chairman 8 times. The company has undergone a series of changes in the past two years, with multiple adjustments to its senior management team, including the chairman and general manager, and a large number of departures from its sales and technical teams.

From a business perspective, drastic changes in the senior management team are not conducive to the sustained and healthy development of the enterprise. Whether the recent changes in senior management will affect the continued development of Wuxi Suntech, or even cause a shock, requires further observation.

[3] YNC Solar: On June 4, YNC Solar issued an announcement stating that due to the recent overall photovoltaic market and the company's own new production capacity commissioning, after discussion by the company's management, the company decided to shut down production on June 3, 2024. It will resume production as appropriate based on market conditions. Regarding the impact on the company, YNC Solar stated in the announcement that the shutdown of the factory will reduce the company's operating income and profit for 2024, and will have a certain impact on the company's operating performance. The company will actively take measures to reduce various expenses during the shutdown period and resume production as soon as possible based on market conditions.

Data shows that Sunshine Zhongke was established in 2010. It is a leading photovoltaic company in Fujian Province, focusing on the R&D, production, and sales of crystalline silicon solar cells. It provides customers with the best value battery chips. Major customers include Haite New Energy and Jingying Optoelectronics.

Although it has been deeply involved in the photovoltaic industry for more than ten years, Sunshine Zhongke has been somewhat slow to react to changes in the industry. In its 2023 annual report, Sunshine Zhongke mentioned that in 2022, the company launched the construction of a Phase III 4GW PERC large-size battery project, which began trial production in 2023. However, 2023 was a year of rapid rise for N-type batteries, with market share rising from about 10% at the beginning of the year to over 50% by the end of 2023. Sunshine Zhongke's new production capacity had not yet recovered its costs when it was caught in a price war, coupled with fierce competition, leading to losses. In 2023, Sunshine Zhongke achieved revenue of 754 million yuan, a year-on-year decrease of 48.39%, and a net loss of 143 million yuan, a turning point from profit to loss. Regarding the significant decline in net profit, Sunshine Zhongke stated in its annual report that this was mainly due to a significant price drop in the second half of 2023, resulting in inventory write-downs, reduced profits, and impairment provisions for Phase I and Phase III workshops.

In terms of countermeasures, Sunshine Zhongke stated in its announcement: 1. During the shutdown period, the company will properly arrange for employees, actively take measures to reduce various expenses during the shutdown period, and strive to resume normal production as soon as possible; 2. The company will continue to maintain supply and demand relationships with suppliers and customers to ensure the supply of raw materials and product sales after resuming production. However, in this extremely fierce photovoltaic "elimination game," it may not be easy for Sunshine Zhongke to resume production.

【4】Huamin Shares: Huamin Shares (300345.SZ) is a high-tech enterprise specializing in the research, development, and production of photovoltaic new energy, wear-resistant new materials, and surface treatment technologies. For a long time, Huamin Shares has been a model enterprise in the cross-border photovoltaic market, a "dark horse" in the photovoltaic market.

In August 2022, Huamin Shares invested 56 million yuan to acquire 80% of the equity of Hongxin Technology (also known as "Hongxin New Energy"), owned by the controlling shareholder欧阳少红 and his spouse, through a high-premium acquisition. Thus, Huamin Shares officially transformed into the new energy sector, entering the photovoltaic silicon wafer field, and quickly secured orders worth over 10 billion yuan. However, the performance of Huamin Shares is diametrically opposed to its continuously increasing orders. According to Huamin Shares' 2023 financial report, in 2023, Huamin Shares incurred a loss (net profit attributable to shareholders of the parent company) of 198 million yuan, a year-on-year decrease of 462.57%; in the first quarter of 2024, it continued to lose 47 million yuan, a year-on-year decrease of 957.56%.

On the other hand, Huamin Shares' asset-liability ratio has also been continuously rising. By the end of 2023, its total asset-liability ratio rose to 65.08%, a year-on-year increase of 40.32 percentage points. At the end of March 2024, the asset-liability ratio surged again to 70.82%, with its total liabilities increasing by 1.938 billion yuan, while monetary funds reserves were only 288 million yuan. After deducting short-term interest-bearing debt, the net funds were -55 million yuan, meaning that the monetary funds reserves were insufficient to cover short-term interest-bearing debt, facing certain financial pressure.

【5】ST Zhongli: Zhongli Group (002309.SZ) was established in 1988. At that time, the company was just a small workshop-style cable factory. After more than 20 years of development, it has grown into a leading enterprise in the field of flame-retardant and fire-resistant soft cables and was listed on the A-share market in 2009. In 2011, when the entire Chinese photovoltaic industry was in adversity, Zhongli Group fought against the tide in the photovoltaic industry through mergers and acquisitions. At its peak in 2017, Zhongli Group's total operating revenue reached 17.996 billion yuan.

However, with changes in the industry cycle, Zhongli Group has been losing money for six consecutive years (2018-2023), with a cumulative loss of 8.306 billion yuan (after deducting non-recurring items and net profit attributable to the parent company) over the six years.

According to its latest disclosure for the first quarter of 2024, Zhongli Group continued to lose 181 million yuan in the first quarter of 2024.

The pressure on Zhongli Group is not limited to this. The financial report shows that as of the end of March 2024, Zhongli Group's asset-liability ratio reached 109.75%, and it has fallen into the dangerous situation of insolvency. In addition, as of now, its controlling shareholder still has the situation of illegally using Zhongli Group's funds (about 1.805 billion yuan).

According to the announcement, Zhongli Group has officially launched the pre-reorganization procedure, and Zhongli Group has identified Changshu Guangsheng New Energy Co., Ltd., a wholly-owned subsidiary of Xiamen Jianfa Co., Ltd., as the industrial investor.

According to the latest regulatory requirements, if Zhongli Group cannot complete asset restructuring within 2024, it may face the risk of delisting. The time left for it is becoming increasingly urgent.

【6】King Kong Solar: King Kong Solar (300093.SZ) was established in 1994 and originally mainly engaged in the R&D, production, and sales of special glass products. It currently focuses on high-efficiency heterojunction (HJT) wafers and components and has developed into a new energy enterprise integrating the R&D, manufacturing, and sales of high-efficiency heterojunction (HJT) batteries and solar components.

On June 16, 2022, King Kong Solar issued an announcement stating that it plans to establish a new holding subsidiary, Gansu King Kong Yide Photovoltaic Co., Ltd. (hereinafter referred to as "King Kong Yide"), as the implementation entity to invest in the construction of a 4.8GW high-efficiency heterojunction battery and component project. The project's investment budget is 4.191 billion yuan, and the construction period is 18 months.

However, the reality is not optimistic. King Kong Solar has been losing money for five consecutive years, with cumulative losses (net profit attributable to the parent company) of 1.052 billion yuan from 2019 to 2023, and continued losses of 84 million yuan in the first quarter of 2024, a year-on-year decrease of 94.80%.

In addition, as of the end of March 2024, King Kong Solar's asset-liability ratio reached 102.60%, also falling into the dangerous situation of insolvency.

King Kong Solar believes that the main reason for the change in performance is that various links in the photovoltaic industry chain accelerated capacity expansion in 2023, the prices of terminal products showed a general downward trend, and competition intensified under industry cycle fluctuations. At the same time, the production line of the Jiuquan base is in the debugging and capacity climbing stage, and the relevant operating costs are high.

【7】Zhonlai Shares: Zhonlai Shares (300393.SZ) was established in 2008. The company mainly engages in photovoltaic auxiliary materials, high-efficiency batteries, high-efficiency components, and photovoltaic application-related businesses. After years of development, it has become one of the leading companies in the photovoltaic backsheet field. Later, it also entered the photovoltaic battery and component field and is one of the earliest domestic companies to engage in the R&D of high-efficiency N-type TOPCon double-sided batteries and components and achieve GW-level mass production.

Currently, Zhonlai Shares' business performance has also been impacted by industry reshuffling. The latest financial report shows that in the first quarter of 2024, Zhonlai Shares' operating revenue decreased by 52.43% year-on-year, and it even lost 172 million yuan, a year-on-year decrease of 268.11%, marking the first loss in the same period in the past four years.

However, its real pressure may still come from the financing side. The financial report shows that as of the end of March 2024, its asset-liability ratio reached 69.92%, and its net funds were -4.65 billion yuan, a decrease of 228.62% year-on-year, and the financial pressure and risks it faces are self-evident.

Perhaps due to the pressure on the capital chain, its major projects under construction have also shown signs of delay. As early as May 22, 2021, Zhonghui Co., Ltd. signed a "Project Investment Agreement" with the Shanxi Transformation Comprehensive Reform Pilot Zone Management Committee. Shanxi Huayang Zhonghui plans to invest in photovoltaic and new energy projects in Shanxi, constructing a 16GW high-efficiency single-crystal battery intelligent factory project with a total planned investment of approximately 5.6 billion yuan. The original construction period for the first phase project (8GW) was 24 months; however, the financial report shows that as of the end of December 2023, the progress of Zhonghui Co., Ltd.'s "16GW high-efficiency single-crystal battery intelligent factory project (Phase I)" was only 70.24%.

[8] Haiyuan Composite Materials: Haiyuan Composite Materials (002529.SZ) was established in 2003. It was originally a composite material lightweight product and new intelligent mechanical equipment enterprise integrating research and development, production, and sales. Around July 2020, its actual controller was changed to Gan Shengquan (Gan Shengquan is currently the actual controller of Jiangxi Saiwei). Since then, Haiyuan Composite Materials has switched to the photovoltaic track.

In December 2020, Haiyuan Composite Materials signed the "Gaoyou City Investment Attraction Project Investment Agreement" with the Jiangsu Gaoyou Economic Development Zone Management Committee. The company plans to establish a project company (registered capital not less than 10 billion yuan) in the Gaoyou Economic Development Zone and invest in the construction of a 10GW high-efficiency photovoltaic cell and 10GW high-efficiency component production project (hereinafter referred to as the "Project"), with a planned total investment of 10.5 billion yuan; in December 2022, Haiyuan Composite Materials announced that it plans to use its wholly-owned subsidiary, Chuzhou Saiwei Energy Technology Co., Ltd., as the main body to invest in the construction of a new photovoltaic industrial base in Quanjiao County, Chuzhou City. The first phase will construct a 10GW TOPCon high-efficiency photovoltaic battery project (Phase I is divided into Phase 1-1, a 4GW TOPCon photovoltaic battery production line project, and Phase 1-2, a 6GW TOPCon photovoltaic battery project); the second phase will construct a 5GW HJT ultra-high-efficiency photovoltaic battery and a 3GW high-efficiency photovoltaic component project, with an investment budget exceeding 8 billion yuan.

However, as of now, the progress of the first 10-billion-yuan project has been slow, and the second major project has been delayed. The financial report shows that as of the end of September 2023, Haiyuan Composite Materials had monetary funds of 0.45 billion yuan, which was not even enough to cover short-term interest-bearing liabilities (0.92 billion yuan).

The financial report also shows that Haiyuan Composite Materials has been losing money (after deducting non-recurring gains and losses) for 11 consecutive years, with a total loss of 1.327 billion yuan in 11 years. According to its explanation of the reasons for the loss in 2023, "Affected by factors such as a decline in demand from some customers and increased market competition, the company's sales scale has decreased; the company's high-efficiency photovoltaic battery project has large upfront construction investment, personnel reserves, and increased period expenses."

In the first quarter of 2024, Haiyuan Composite Materials' operating revenue and net profit attributable to the parent company decreased by 33.69% and 35.10% year-on-year, respectively.

[9] *ST Jiayu: Jiayu Co., Ltd. (300117.SZ) was established in 1987. It is an integrated provider of building energy saving, intelligent, solar photovoltaic, and window curtain wall systems, integrating research and development, design, production, and construction. Its main businesses are divided into three major sectors: energy-saving window curtain walls, solar photovoltaics, and high-end intelligent equipment.

The company currently has four fully automated photovoltaic component production lines, with an annual production capacity of 2GW. In 2023, Jiayu Co., Ltd.'s photovoltaic business revenue was 1.026 billion yuan, a year-on-year decrease of 30.82%, accounting for 85.20% of its total operating revenue.

However, with the intensified competition in the photovoltaic industry, the operating pressure and risks faced by Jiayu Co., Ltd. cannot be ignored. The financial report shows that more than 98% of its revenue (2022 and 2023) still comes from the domestic market; it has suffered losses for three consecutive years (2021-2023), with a total loss of 2.925 billion yuan in three years. In the first quarter of 2024, its revenue and net profit decreased by 75.61% and 389.99% year-on-year, respectively.

As of the end of March 2024, Jiayu Co., Ltd.'s asset-liability ratio was as high as 160.98%, and it has fallen into a state of insolvency; as of the end of March 2024, Jiayu Co., Ltd. had monetary funds of 0.34 billion yuan, while its short-term interest-bearing liabilities amounted to 6.32 billion yuan, and the debt repayment pressure and risks are self-evident.

[10] Dongxu Blue Sky: Dongxu Blue Sky (000040.SZ) was formerly known as Baoan Real Estate and was established in 1982. In 2015, Dongxu Group took over the company, and since then it has entered the photovoltaic industry. Currently, Dongxu Blue Sky has a complete photovoltaic power generation system, including photovoltaic component production, power station development, construction, intelligent operation and maintenance, and technological research and development. As of the end of June 2023, it owns 57 grid-connected power plants with a total installed capacity of approximately 1GW; the company has built an intelligent operation and maintenance management platform for photovoltaic power plants, with self-operated and outsourced operation and maintenance projects of nearly 2GW.

However, data shows that in the past five years (2019-2023), except for 2021 when its operating revenue achieved positive growth, its operating revenue has declined to varying degrees. According to its performance forecast, its annual operating revenue in 2023 has dropped to 1.5-1.8 billion yuan, a year-on-year decrease of approximately 50.59%-40.71%, and it has been losing money (after deducting non-recurring gains and losses) for five consecutive years. For example, the total loss from 2019 to 2022 was 3.224 billion yuan, and the expected loss in 2023 is 160 million to 260 million yuan.

The author's analysis found that Dongxu Blue Sky also faces significant financial pressure. According to the financial report, as of the end of September, Dongxu Blue Sky had monetary funds of 3.19 billion yuan, while its short-term interest-bearing liabilities amounted to 5.139 billion yuan, resulting in a funding gap of 1.949 billion yuan.

On the evening of May 8, Dongxu Blue Sky announced that it had received a "Letter of Case Filing" issued by the China Securities Regulatory Commission. Because the company failed to disclose its 2023 annual report within the prescribed time limit, the CSRC decided to file a case against the company in accordance with the "Securities Law of the People's Republic of China", the "Administrative Penalty Law of the People's Republic of China", and other laws and regulations.

[11] Xinbo Co., Ltd.: Xinbo Co., Ltd. (003038.SZ) was established in August 2013. Since its establishment, the company has been focusing on the aluminum profile and aluminum parts industry and has become an aluminum supplier for many large and high-quality customers. The company has successfully entered the supplier system of first-tier enterprises in the new energy photovoltaic industry, such as Longi Green Energy, JA Solar, and Trina Solar, and enjoys high recognition among customers in the new energy photovoltaic industry.

Despite this, Xinbo Co., Ltd. has also faced considerable operating pressure since 2023. For example, although Xinbo Co., Ltd.'s operating revenue and net profit increased by 61.59% and 60.8% year-on-year in 2023, respectively, its operating cash flow decreased from -338 million yuan in 2022 to -642 million yuan, showing a further worsening trend.

Moreover, as of the end of September 2023, Xinbo Co., Ltd.'s net funds were only -2.598 billion yuan, indicating a large funding gap between its funds reserves and short-term interest-bearing liabilities.

According to Black Hawk Photovoltaic statistics, Xinbo's domestic revenue accounts for a considerable proportion in recent years. Given the intensifying domestic competition, its ability to withstand industry fluctuations needs further improvement compared to companies with stronger internationalization capabilities.

【12】Haiyou New Materials: Haiyou New Materials (688680.SH), established in September 2005, mainly produces photovoltaic encapsulant films used in photovoltaic components. 2022 was Haiyou New Materials' peak year, with annual revenue reaching 5.307 billion yuan. Before that, its revenue had grown for nine consecutive years.

However, entering 2023, not only did its growth rate plummet, but its debt risks and pressures also increased rapidly. According to the financial report, the operating revenue in 2023 was 4.872 billion yuan, a year-on-year decrease of 8.2%, with a full-year loss of 229 million yuan, a year-on-year decrease of 556.29%; in the first quarter of 2024, Haiyou New Materials' operating revenue and net profit attributable to the parent company decreased by 35.08% and 182.83% year-on-year, respectively.

In addition, according to Black Hawk Photovoltaic statistics, as of the end of March 2024, Haiyou New Materials' net funds were -1.96 billion yuan, with a significant funding gap between its capital reserves and short-term interest-bearing liabilities.

【13】Yi Hua Shares: Yi Hua Shares (002897.SZ), established in December 1995, mainly engages in solar mounting systems and connector businesses. The company has been deeply involved in the photovoltaic mounting system field for many years. After years of development, the company has established photovoltaic mounting system production bases in Yueqing, Tianjin, and Thailand. In terms of photovoltaic mounting system business, the company's customers include NEXTracker, GCS, FTC Solar, Trina Solar, and other well-known photovoltaic companies at home and abroad.

At its peak, Yi Hua Shares' annual revenue scale maintained growth for seven consecutive years (2016-2022), but in 2023, it fell into a comprehensive slowdown crisis: the financial report shows that in 2023, Yi Hua Shares' operating revenue increased by only 0.96%, while its net profit attributable to the parent company decreased by 49.04% year-on-year.

As of the end of March 2024, Yi Hua Shares' net funds were -1.308 billion yuan, also facing certain financial pressure.

【14】Dike Shares: Dike Shares (300842.SZ), established in July 2010, mainly produces conductive silver paste for crystalline silicon solar cells. It has been widely recognized and established long-term stable cooperative relationships with well-known photovoltaic manufacturers, including JinkoSolar, Trina Solar, JA Solar, Tongwei Solar, AIXTRON, JA Solar, Hanwha Q CELLS, CHINT Solar, and Da Dao New Energy, and is already in the first echelon of the global photovoltaic conductive silver paste supply chain.

Data shows that Dike Shares' annual revenue scale has maintained a growth trend for five consecutive years, but the risks and phenomena behind its rapid development cannot be ignored. For example, although Dike Shares' operating revenue and net profit increased by 154.94% and 2336.51% respectively in 2023, its net operating cash flow decreased from -197 million yuan in the same period last year to -1.051 billion yuan, indicating a significant decline in its blood-making ability.

On the other hand, as of the end of March 2024, its asset-liability ratio reached 80.81%, and according to Black Hawk Photovoltaic statistics, Dike Shares' net funds were -416 million yuan.

【15】ST Lingda: Lingda Shares (300125.SZ), established in December 2005, mainly engages in high-efficiency crystalline silicon solar cell business. Its wholly-owned subsidiary, Jiayue New Energy, is located at No. 1, Bijia Mountain Road, Jinzhai County Modern Industrial Park, Anhui Province. It plans to invest a total of 4 billion yuan to build a 10GW high-efficiency photovoltaic cell production capacity. The project will be constructed in three phases. The first phase has completed and put into operation a 3GW high-efficiency PERC crystalline silicon cell project; the second phase will invest in the construction of a 5GW 210-compatible 182 TOPCon cell intelligent factory; the third phase will be planned according to market conditions and the company's actual development strategy.

In December 2020, Lingda Shares announced that it planned to construct the "Jinzhai Jiayue New Energy Phase II 5.0GW high-efficiency cell (TOPCon) project," with a planned investment budget of 1.784 billion yuan and a construction period of 9 months. However, by the end of 2023, the project's progress was only 22.58%, far below the previous expectation.

In fact, Lingda Shares also faced losses in 2023. In 2023, its operating revenue and net profit attributable to the parent company were 839 million yuan and a loss of 262 million yuan, respectively, representing year-on-year decreases of 47.49% and 1447.69%, respectively. In the first quarter of 2024, they decreased by 86.91% and 534.84% year-on-year, respectively.

It also faces significant financial pressure. As of the end of March 2024, Lingda Shares only had 38 million yuan in cash, which is not enough to cover its short-term interest-bearing debt (124 million yuan). How can such capital strength support an expansion strategy of several billion yuan?

【16】Green Energy Treasure: After leaving Suntech Power, Peng Xiaofeng obtained control of Sunny Power Internet Energy Company (SPI), which was 70% acquired by Suntech Power in 2011. SPI's predecessor was the US Solar Company, established in California in 2005 and listed in the US in 2007. Its core business is the development, investment, construction, and operation and management of photovoltaic power plants. Green Energy Treasure is a brand project under this company, operated by SPI's wholly-owned subsidiary, Jiangsu Green Energy Treasure Financial Leasing Co., Ltd.

In 2015, Peng Xiaofeng returned to the spotlight of the photovoltaic industry as chairman of SPI and started his latest round of entrepreneurship, transforming into the energy internet field and launching the Green Energy Treasure product. According to its business concept, the minimum investment threshold for Green Energy Treasure is 1,000 yuan, and monthly rental income can be obtained, with an annualized return rate of 8%-10%. Within half a year of its launch, it received US$320 million through five rounds of financing, with investors including Shi Yuzhu and Xu Jiayin, among other business tycoons at the time. In 2016, SPI, which was in full swing, successfully transferred from the US OTC market to Nasdaq.

However, the momentum changed in the following year, 2017, and Green Energy Treasure began to experience a redemption crisis. In May, it announced that the platform had overdue rental payments of over 220 million yuan, involving 5,746 online investors; then in October, it announced that the latest total overdue amount was 630 million yuan (including 490 million yuan in overdue withdrawal applications and 140 million yuan in overdue project investments), involving 11,000 online investors.

Subsequently, Green Energy Treasure was investigated by the police on suspicion of illegal fundraising, and a red notice was issued for Peng Xiaofeng.

The financial report also shows that Green Energy Treasure has been in a state of loss. From 2012 to 2022, Green Energy Treasure's total losses amounted to 4.471 billion yuan; as of the end of 2022, its total asset-liability ratio reached 92.27%, with only 25 million yuan in cash, while its short-term interest-bearing debt amounted to 391 million yuan, facing enormous operating pressure and risks.

【17】Shuangliang Energy Saving: Shuangliang Energy-Saving (600481.SH) was established in October 1995 and listed on the Shanghai Stock Exchange in April 2003. This company can be said to have "made its fortune in energy saving and become famous in photovoltaics". Shuangliang Energy-Saving's involvement in new energy development began in 2015. That year, it entered the field of core production equipment (reduction furnaces) for photovoltaic polysilicon through mergers and acquisitions. Shuangliang Energy-Saving's "polysilicon reduction furnace" business has ranked first in China for many years, with a market share of over 65%.

However, due to the limited and intense nature of the market segment, Shuangliang Energy-Saving's revenue scale has not seen significant improvement. The revenue from its "polysilicon reduction furnace" business even experienced a sharp decline in 2019 and 2020, reaching only 177 million yuan in 2020, accounting for only 8.54% of its total revenue, and a 60.05% decrease from its peak in 2018.

In the photovoltaic field, Shuangliang Energy-Saving's famous battle was its foray into one of the core sectors of photovoltaics. Based on its previous foundation in polysilicon reduction furnaces in the photovoltaic equipment field, Shuangliang Energy-Saving's decision-makers decided to expand the industrial chain from upstream to downstream, moving into the photovoltaic silicon wafer business and then into the component sector.

On March 15, 2021, Shuangliang Energy-Saving announced that it would sign a "Cooperation Agreement for the Baotou 40GW Monocrystalline Silicon Phase I Project (20GW)" with the Baotou Municipal Government and the Baotou Rare Earth High-tech Zone Management Committee. The company will build a total of 40GW monocrystalline silicon project in two phases in the Baotou Rare Earth High-tech Zone.

Shuangliang Energy-Saving's Phase I project has a total investment of 7 billion yuan, building an annual production capacity of 20GW for ingot casting and 20GW for slicing. According to the feasibility study report, the construction period of this project is two years. Partial production capacity will be achieved in the first year after the start of construction, and the third year will be the year of reaching full production capacity. The estimated average annual operating income after reaching full capacity is 10.8 billion yuan.

On April 6, 2022, Shuangliang Energy-Saving issued an investment announcement stating that it plans to invest 5 billion yuan in the Baotou Rare Earth High-tech Zone to build a 20GW high-efficiency photovoltaic component project. The project will be implemented in phases: Phase I, a 5GW photovoltaic component project with an estimated total investment of 1.5 billion yuan and a construction period of two years. The subsequent 15GW production capacity will be gradually completed after the start of Phase I based on market conditions.

As of the end of 2023, Shuangliang Energy-Saving's designed production capacity for monocrystalline silicon wafers was 38GW, with an actual output of 44GW for the whole year of 2023, and a battery component output of 0.71GW.

The latest financial report shows that in the first quarter of 2023, Shuangliang Energy-Saving's operating revenue was 4.248 billion yuan, a year-on-year decrease of 22.25%, with a loss of 295 million yuan, a year-on-year decrease of 158.74%. As of the end of March 2024, Shuangliang Energy-Saving's asset-liability ratio increased to 77.33%, the highest in history for the same period. Although it has monetary funds of 6.26 billion yuan, it is still insufficient to cover short-term interest-bearing liabilities (6.938 billion yuan). It also faces considerable operating pressure.

【18】Yijing Photovoltaic: Yijing Photovoltaic (600537.SH) was established in 1998, and its main business is the production and sales of high-efficiency crystalline silicon solar cells and components. The Changzhou base currently has a 5GW PERC high-efficiency crystalline silicon cell production line and a 10GW high-efficiency crystalline silicon component production line. It also has successful experience in the construction and operation of photovoltaic power plants, further extending its industrial chain to the photovoltaic power plant field.

Now it is also facing a slowdown and even losses. According to the financial report, in 2023, Yijing Photovoltaic's operating revenue and net profit attributable to the parent company decreased by 17.96% and 45.77% year-on-year, respectively. In the first quarter of 2024, operating revenue fell again by 50.12% to 1.005 billion yuan, and it lost 211 million yuan, a year-on-year decrease of 266.67%, creating the highest loss record since 2005.

Perhaps affected by this, Yijing Photovoltaic's major investment projects have also been delayed. On September 22, 2022, Yijing Photovoltaic announced that it plans to invest in a Chuzhou annual production of 10GW high-efficiency N-type TOPCon photovoltaic cell project (Phase I), a 10GW photovoltaic slicing project (Phase II), and a 10GW photovoltaic component project (Phase III). The total investment of Phase I is estimated to be about 5 billion yuan, with an estimated completion date of April 2023 and start of production in June. However, the financial report shows that as of the end of 2023, the project progress was only 62.54%, lower than expected.

【19】ST Tianlong: Tianlong Optoelectronics (300029.SZ) was established on December 28, 2001, and entered the photovoltaic equipment industry in 2004. Its main products include monocrystalline silicon production furnaces, monocrystalline silicon cutting machines, and monocrystalline silicon square rolling and grinding machines. It was listed on the Shenzhen Stock Exchange's ChiNext board at the end of 2009. At that time, the company was one of the companies with the most complete range of products in the field of production and processing equipment for solar cell silicon materials in China, and also a leading company in the photovoltaic equipment field.

More than a decade ago (2007), as a leading monocrystalline equipment manufacturer, Tianlong Optoelectronics had operating revenue and total assets of 243 million yuan and 294 million yuan respectively, while Longi Green Energy had operating revenue and total assets of 223 million yuan and 234 million yuan respectively. Tianlong Optoelectronics was slightly better.

However, Tianlong Optoelectronics has now been losing money for six consecutive years (after deducting non-recurring gains and losses, net profit attributable to the parent company). According to statistics from Black Hawk Photovoltaics, Tianlong Optoelectronics accumulated losses of 241 million yuan from 2018 to 2023.

The latest financial report shows that as of the end of March 2024, Tianlong Optoelectronics' asset-liability ratio reached 93.17%, with only 28 million yuan in monetary funds. Such weak comprehensive strength is undoubtedly at a disadvantage in the fierce market competition in the photovoltaic industry.

【20】Mubang High-Tech: Mubang High-Tech (603398.SH) was established in August 2003. In 2021, it entered the photovoltaic industry by acquiring the upstream silicon wafer manufacturer Hao'an Energy. It also hired Guo Junhua, COO of JA Solar, as the company's general manager.

The following year, Mubang High-Tech made a high-profile foray into the TOPCon battery field. On June 2, 2022, the company signed an "Investment Strategic Cooperation Framework Agreement" with the Anyi County People's Government to jointly build an 8GW TOPCon photovoltaic battery production project. In July, Mubang High-Tech announced that it had signed a "10GW TOPCon Photovoltaic Battery Production Base Project Investment Contract" with the Wuzhou Municipal Government. The project's budget is 5.2 billion yuan. In August, it signed a "Strategic Cooperation Framework Agreement" with the Echeng District People's Government, planning to build a 10GW TOPCon photovoltaic battery production base project in Echeng, with an estimated investment of 4.8 billion yuan.

However, more than a year later, Mubang High-Tech's 8GW Anyi project and 10GW Echeng project have both been terminated. In June 2023, Liao Zhiyuan, chairman of Mubang High-Tech, stated at the performance briefing that the Wuzhou project's commissioning time was delayed from the plan.

It's noteworthy that even during Mubang High-tech's aggressive expansion in 2022, its annual operating revenue was only 944 million yuan, with a loss of 229 million yuan and an asset-liability ratio of 77.46%. It only had 51 million yuan in cash on hand, not even enough to cover its short-term interest-bearing debt (244 million yuan).

However, this doesn't seem to have dampened Mubang High-tech's expansion enthusiasm. In January 2024, Mubang High-tech announced that it had signed a Project Investment Agreement with the Tongling Lion Mountain High-tech Industrial Development Zone Management Committee and Tongling High-tech Development Investment Co., Ltd. to construct a "10GW-N type high-efficiency battery slice and 10GW slicing production base project," with a projected investment of approximately 7 billion yuan.

The latest financial report shows that in the first quarter of 2024, Mubang High-tech's operating revenue was 346 million yuan, a year-on-year increase of 0.29%, but it lost 33 million yuan, a year-on-year decrease of 197.19%. As of the end of March 2024, Mubang High-tech had 688 million yuan in cash on hand, and its total short-term interest-bearing debt was 386 million yuan. Can its operating and capital strength support Mubang High-tech's nearly 10 billion yuan industrial ambition?