Hongyuan Green Energy plans to invest 630 million yuan to participate in the restructuring of Wuxi Suntech. The predecessor of the leading photovoltaic company has total liabilities of 4.5 billion yuan.

What should you look at when facing thousands of listed company announcements every day? What are the key points in major event announcements that can be dozens or hundreds of pages long? Are professional terms in the announcements helpful or harmful? Please check the “Quick Read Announcements” section by Caixin News Company News Department, where our reporters stationed nationwide will provide you with accurate, fast, and professional interpretations on the night of the announcement.

Caixin News, March 25th — (Reporter Liu Mengran) Hongyuan Green Energy (603185.SH) has a preliminary outline of the restructuring plan for Wuxi Suntech. Tonight, Hongyuan Green Energy announced that its controlling subsidiary, Hongyuan Photovoltaic, will jointly establish a new company, New Suntech, with Wuxi Suntech. The registered capital of New Suntech is 1 billion yuan. Hongyuan Photovoltaic will contribute 630 million yuan to hold approximately 63% of New Suntech’s shares and will lead the investment consortium, introducing other investors.

This means that Wuxi Suntech, once a leading photovoltaic manufacturer, has experienced ups and downs. Although it still faces insolvency issues, it finally has a chance for “rebirth.” After the establishment of New Suntech, once the court approves the restructuring plan, it will pay Wuxi Suntech 142 million yuan in restructuring investment, of which 50 million yuan has already been paid into the administrator’s account as an investment guarantee deposit.

According to the announcement, this payment will mainly be used to acquire core assets necessary for Wuxi Suntech’s operations, including some subsidiary equity, trademarks related to the Suntech brand, patents, and other intellectual property rights. It will also be used to cover bankruptcy costs, common benefit debts, employee claims, relevant taxes and fees, and debt repayment expenses.

Wuxi Suntech was founded in 2001 and was once a globally renowned photovoltaic module manufacturer. It listed on the New York Stock Exchange in 2005 and enjoyed a period of prosperity. However, due to industry cycle fluctuations and management decisions, it filed for bankruptcy restructuring in 2013, with Shunfeng Photovoltaic taking over.

Previously disclosed information shows that on May 26, 2025, the People’s Court of Xinwu District, Wuxi City, ruled to initiate pre-restructuring procedures for Wuxi Suntech, with the period later extended. Hongyuan Green Energy’s involvement marks its second key investment in Wuxi Suntech’s bankruptcy restructuring.

As a company that coordinates the upstream and downstream of the photovoltaic industry chain, Hongyuan Green Energy mainly engages in photovoltaic modules, silicon wafers, and related businesses. Its participation in Wuxi Suntech’s restructuring is seen by industry insiders as an important move to improve its industrial chain layout and expand brand channels. Wuxi Suntech still maintains a high brand recognition worldwide, with sales covering over 100 countries and regions, especially strong in the European market.

Although Wuxi Suntech’s brand and channel value remain, Hongyuan Green Energy faces significant financial pressure to acquire these assets. As disclosed today, as of May 26, 2025 (the date the court accepted Wuxi Suntech’s pre-restructuring), Wuxi Suntech’s audited total assets are 537 million yuan, total liabilities are 4.58B yuan, and net assets are -4.04B yuan.

Regarding its participation in Wuxi Suntech’s restructuring, Hongyuan Green Energy stated that it is a comprehensive decision made in response to the national resource integration call, combined with its own operational improvement trend and Wuxi Suntech’s brand value, technological accumulation, and customer resources. The company will later leverage the advantages of both sides to achieve coordinated development.

It is worth noting that Hongyuan Green Energy has also faced industry downturn pressures in recent years. According to its January earnings forecast, it expects a net profit attributable to the parent company of 180 million to 250 million yuan in 2025, but its non-recurring net profit remains at -250 million to -310 million yuan. During the reporting period, the company transferred part of its equity in Inner Mongolia Xinyuan Silicon Materials Technology Co., Ltd., which will increase its consolidated profit for 2025 by approximately 291 million yuan.

Regarding the reasons for the performance changes, Hongyuan Green Energy explained that the phase-overcapacity and supply-demand mismatch issues will persist in 2025. Product prices across the industry chain continue to be under pressure, especially with a significant increase in silver paste prices in the fourth quarter, which increased production costs for some of its products and added operational pressure. However, the company’s asset-liability ratio has remained below 60% for a long time, demonstrating strong risk resistance.

Massive information, precise interpretation, all on Sina Finance APP.