1. Cross-border termination, account closure and stop loss
On February 2, Sunflower issued an announcement to suspend the "Proposal on Terminating the Investment Cooperation Agreement and Canceling the Project Company", which is based on Zhejiang Longxiang and jointly invested by Sunflower, Shanghai Longxiang and Shaoxing Integrated Circuit Fund, and plans to build a production line with an annual output of 10GWTOPCon cells. On April 17, 2023, Zhejiang Longxiang signed the "Purchase and Sales Contract" with Jiejia Weichuang, with a total contract amount of about 827 million yuan, and the project is progressing smoothly.
However, in less than a year, Sunflower announced the cancellation of the project company Zhejiang Longxiang and the abandonment of the TOPCON battery track. This is the second time that Sunflower has left the PV market. Sunflower was once a well-known player in the photovoltaic industry, affected by the 531 New Deal, its performance fell sharply, with a loss of more than 1 billion yuan, so it stripped off the photovoltaic-related business and transformed to the pharmaceutical field, and now entered the photovoltaic market for the second time, but it still seems to have failed. According to Sunflower's announcement, after preliminary calculations, the termination of this project is expected to reduce the company's net profit attributable to shareholders of listed companies in 2023 by about 4.2 million yuan.
Recently, Sunflower seems to plan to regain the photovoltaic business, on March 1, Sunflower announced that the company and Zhuhai Youying New Materials Investment Partnership (Limited Partnership), 2495 Metal-based Ceramic Technology (Zhuhai Hengqin) Partnership (Limited Partnership) signed an "investment cooperation agreement", to jointly invest in the establishment of a limited liability company (hereinafter referred to as the "project company"), the project company is mainly engaged in metal-based ceramics related research and development, production, Sales and service are widely used in semiconductors and photovoltaic equipment and other fields.
As early as August 2023, the cross-border king Royal Group announced the transfer of part of the equity of Anhui Royal Green Energy Technology Co., Ltd., involving Anhui 20GWTopcon ultra-efficient solar cells and 2GW module projects, with a project investment of 10 billion, and Royal Group will no longer promote the TOPCON project. In the following two months, Royal Group cancelled Royal Jinghua, which was one of the measures of cross-border photovoltaics, and no longer increased the photovoltaic industry. In addition, the cross-border photovoltaic projects of enterprises such as Aowei Communications, Qianjing Garden, Pulutong, and Ribo Fashion have also been terminated. According to incomplete statistics, more than 80GW of cell projects have lost their cross-border production capacity.
Second, the successive replacement of executives, repeatedly enforced by the court, photovoltaic veterans "embattled"
As a former "giant" in the photovoltaic industry, Wuxi Suntech Solar Power Co., Ltd., once the world's largest photovoltaic module manufacturer, is now "embattled"
In 2023, Wuxi Suntech has undergone significant personnel adjustments and changed senior executives many times, which has sparked heated discussions in the industry.
On October 9, 2023, Wuxi Suntech changed its legal person, from Wang Shuiyun, the former chairman and general manager, to Dai Xiaowen, Shao Yangmin was added as chairman, Dai Xiaowen was added as general manager, and Wang Shuiyun withdrew from the list of key personnel of the company.
On October 26, 2023, He Shufan became the chairman of Shunfeng Optoelectronics and the company's legal representative, Wang Yang was added as a supervisor, and the former director Liu Bin and the former supervisor Xue Juanhua withdrew.
On November 4, 2023, the senior management of Wuxi Suntech Solar Power Co., Ltd. (hereinafter referred to as "Wuxi Suntech") changed again. Chairman Shao Yangming and director Chen Bihua withdrew, and Li Lu was added as a director. The legal representative of the company has also been changed to He Shufan on November 2, and he has also become the chairman of Wuxi Suntech.
On December 13, 2023, the industrial and commercial change records show that Wu Fei, the founder of Jingyou Solar, has been appointed as the chairman of Suntech Solar Technology Co., Ltd. (hereinafter referred to as "Suntech Technology").
In addition, Suntech is deeply involved in litigation turmoil, and there are obvious signs of increasing litigation cases in Changzhou Suntech entering 2024. As of April 12, 2024, Changzhou Suntech has added 6 new litigation cases, all of which are defendants. Among the 6 lawsuits, there were 5 disputes over sales contracts and 1 dispute over service contracts. Recently, Wuxi Suntech has also added two new litigation cases.
On the evening of March 18, 2024, Microconductive Nano announced that it would sue Wuxi Suntech Solar Power Co., Ltd. On April 6, 2021, Jiangsu Microconductive Nano Technology Co., Ltd. signed the Equipment Procurement Contract with Wuxi Suntech Solar Power Co., Ltd., after the contract was signed, Conductive Nano delivered and accepted 100.75 million yuan of equipment as required, and Wuxi Suntech only paid a small amount of advance payment and delivery. Up to now, the balance of accounts receivable (including warranty money) of Wuxi Suntech is 90.675 million yuan. Microconductive Nano requested that Wuxi Suntech be ordered to immediately pay the company 41.559 million yuan and liquidated damages of 2.077 million yuan.
Suntech has been listed as an executor for many times, and as early as September 2023, Wuxi Suntech was listed as a dishonest executor, with an execution target of 511 million yuan.
3. Continuous losses, delisting warning
On January 31, 2024, the photovoltaic veteran Jiangsu Zhongli was again enforced by the court, with an enforcement amount of about 799 million yuan, and since the beginning of 2024, the company has been executed up to 4 times, each time the amount of execution has exceeded 10 million, and the total amount of the four times has reached 1.01 billion yuan.
On April 16, ST Zhongli issued an announcement on the revision of the 2023 annual performance forecast, adjusting the net profit attributable to shareholders of listed companies in 2023 from a net loss of 924 million to 1.25 billion yuan to a net loss of 1.20 billion to 1.55 billion yuan, and a loss of about 485 million yuan in the same period last year. Since the beginning of 2020, ST Zhongli has been in the red for 4 consecutive years. On the day of the release of the 2023 annual performance report, ST Zhongli also issued a reminder announcement that the company's stock trading may be subject to delisting risk warning.
Fourth, financial fraud, facing fines and delisting risks
On April 3, *ST Hongxiang (300427) and related parties received the "Administrative Penalty Decision" issued by the Xiamen Supervision Bureau of the China Securities Regulatory Commission. According to the decision, the China Securities Regulatory Commission (CSRC) has strictly investigated and dealt with the financial fraud of *ST Hongxiang, fined the company and relevant responsible persons a total of 65.56 million yuan, and banned two responsible persons from entering the market.
Among them, Yang Cheng, the actual controller of the company and the then chairman and general manager, was fined 22.88 million yuan and banned from the market for life for organizing and guiding the company to carry out information disclosure violations and fraud, which was extremely serious.
On the same day, the company also announced that Mr. Yang Cheng, chairman and general manager of the company, resigned from many important positions such as the company's director, chairman and general manager due to receiving a penalty decision and market ban.
According to the relevant penalty list, since the listing of Hongxiang shares in 2015, it has started the fraud mode in 2017, and in the following 6 years, it has inflated its operating income by 1.001 billion yuan and inflated profits by 392 million yuan through illegal means. Not only that, the company also used false financial data to successfully implement private placement and convertible bond financing, from which the funds raised up to 643 million yuan. It was also judged to be a fraudulent issuance.
It is worth noting that at the end of January 2024, Hongxiang shares disclosed that the 2023 annual performance forecast shows that the company expects to achieve operating income of 1.15 billion yuan to 1.2 billion yuan for the whole year, and the net profit attributable to the parent company will be a large loss of 660 million yuan to 710 million yuan, a significant loss compared with the profit of 65.4532 million yuan in the same period of the previous year, and at the same time, the non-net profit will also be significantly lost 485 million yuan to 535 million yuan, which also shows a serious loss trend, which undoubtedly increases the risk of the company's stock termination listing.
5. Net profit loss, litigation riddled with 80.78% of the net assets involved
On April 15, 2024, King Kong Solar issued an announcement on the cumulative litigation and arbitration cases. From March 19 to April 15, less than a month. King Kong Solar has been sued by 7 companies in 9 cases, and all of them are defendants. The cumulative amount involved is 19.9859 million yuan, accounting for 80.78% of the company's audited net assets attributable to shareholders of listed companies in 2022.
On January 30, the 2023 annual performance forecast released by King Kong Photovoltaic disclosed that the net profit loss attributable to shareholders of listed companies was 385 million yuan to 284 million yuan.
Sixth, huge losses, production stoppage, photovoltaic "dark horse" cold
In August 2020, Lingda acquired Jinzhai Jiayue New Energy and officially entered the photovoltaic industry, Jinzhai Jiayue New Energy signed long-term supply contracts with LONGi, Jinko, JA Solar and other first-tier enterprises in the industry, and in the following years, taking advantage of the dividend period of the photovoltaic market, Jinzhai Jiayue New Energy developed rapidly, and contributed more than 90% of the revenue to Lingda shares for many times, and Lingda shares were once regarded as "underestimated dark horses in the photovoltaic industry".
In 2024, the P-N transformation of the PV market will be rapid, the demand for P-type cells will shrink rapidly, and the price will plunge and fall sharply, which is undoubtedly bad news for Lingda Co., Ltd., which is still under construction and mainly engaged in P-type business.
On March 15, 2024, Lingda Co., Ltd. announced that due to various factors such as technology iteration and the recent fluctuating downward trend of the overall price of the photovoltaic industry chain, the company's subsidiary, Jinzhai Jiayue New Energy Technology Co., Ltd. (hereinafter referred to as "Jinzhai Jiayue New Energy"), in order to reduce losses and overall business risks, has recently temporarily suspended the production of its high-efficiency photovoltaic solar cell production line, which will end on April 15, 2024;
On March 18, Lingda's N-type cell project in Tongling, with an investment of up to 9.15 billion yuan, was urgently stopped. So far, Lingda shares have fallen into the embarrassing situation of P-type battery discontinuation and N-type planning termination.
According to the latest announcement issued on March 24, the funds of 8 bank accounts of the company and its subsidiary Jinzhai Jiayue were frozen due to contract disputes with Wuxi Dike, Haier Leasing and other companies;
On the evening of April 9, Lingda Co., Ltd. issued an announcement on the revision of the 2023 annual performance forecast, according to the revised announcement, the net profit attributable to shareholders of listed companies in 2023 is expected to lose 249 million yuan to 298 million yuan, a year-on-year decrease of 1370%-1660%, which is the largest net profit loss among the photovoltaic-related enterprises that have been disclosed;
On April 15, Lingda Co., Ltd. announced that the main production equipment of Jinzhai Jiayue will continue to be suspended, and the shutdown time is expected to be until May 15, 2024;
On April 16, 2024, Lingda shares were frozen due to the contract dispute between Jiangsu Zhengneng and Chengdu C&D, and as of April 16, 2024, a total of 20 accounts have been frozen in the bank accounts of Lingda shares and Jinzhai Jiayue, including 2 basic bank accounts and 18 general bank accounts.
The successive announcements seem to have announced the cross-border failure of Lingda shares.
Article source: PV Consulting