Wuxi Shangji Automation Co Ltd

Hongyuan Green Energy plans to invest 630 million yuan through a controlled subsidiary to establish New Suntech, and pay 142 million yuan in restructuring investment, participating in the bankruptcy restructuring of Wuxi Suntech, which has total liabilities of 4.578 billion yuan and negative net assets of 4.041 billion yuan. As of May 26, 2025, Wuxi Suntech's audited total assets were 537 million yuan, and it has entered restructuring proceedings due to insolvency. In terms of transaction structure, Hongyuan Green Energy does not directly assume historical debts; instead, New Suntech will acquire equity in certain subsidiaries, brands, and intellectual property assets of Suntech, while the original 4.578 billion yuan in liabilities remain with the old entity and are settled with a 10 percent equity stake in New Suntech. Hongyuan Green Energy projects a loss of 590 million to 690 million yuan for the first half of 2026, and this investment of several hundred million yuan, along with subsequent production line upgrades and working capital needs, will test its financial resilience. The company, formerly known as Shangji CNC, is advancing full vertical integration of the photovoltaic industry chain, and controlling New Suntech is intended to fill the gap in downstream module operations, but industry overcapacity and integration difficulties cast doubt on strategic synergies. The actual controllers, Yang Jianliang and his son Yang Hao, face dual pressures of capital and operations, and the performance after restructuring remains to be seen.

Hongyuan Green Energy disclosed its earnings forecast, expecting a net loss attributable to shareholders of 590 million to 690 million yuan in the first half of 2026, compared with a loss of 297 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 400 million to 500 million yuan, compared with a loss of 356 million yuan a year earlier. The company stated that the phased supply-demand mismatch in the photovoltaic industry has not been fundamentally resolved, and prices of some products in the industry chain have dropped significantly from the beginning of the year. The average price of dense polysilicon fell from 52.0 yuan per kilogram at the start of the year to 32.5 yuan per kilogram at the end of the reporting period, while the average price of monocrystalline N-type wafers dropped from 1.40 yuan per piece to 0.88 yuan per piece, significantly squeezing corporate profit margins. Facing these challenges, the company will continue to promote technological iteration and upgrading, accelerate its global strategic layout, and advance production lines toward high-efficiency technology platforms.