Recently, Sichuan Yingfa Ruineng Technology CO., LTD. submitted its first IPO application to the Hong Kong Stock Exchange. In June 2023, the company had previously submitted an IPO application to the Shanghai Stock Exchange main board, but later decided to terminate the A-share IPO due to changes in the company's future development strategy and market environment.

In 2024, Sichuan Yingfa Ruineng Technology's revenue was halved and the company posted losses, while in the first four months of 2025, the company's revenue doubled year-on-year and achieved significant turnaround from losses, showing dramatic performance fluctuations. Additionally, the company's gross margin surged dramatically from -7% to 24%, which differs significantly from comparable companies such as Tongwei, Junda, and Aixu. This abnormal change in profitability in the short period before the Hong Kong IPO sprint deserves attention.

Sichuan Yingfa Ruineng Technology's main products are photovoltaic cells, with downstream customers covering 9 of the top 10 module manufacturers. However, due to relatively single product offerings, under the backdrop of industry giants' integrated industrial layout, the company's operational and performance pressures are increasing daily. In 2024, inventory turnover days increased 5-fold year-on-year, and accounts receivable turnover days increased 3-fold.

Over the past three years, Sichuan Yingfa Ruineng Technology has raised funds 4 times, with cumulative fundraising exceeding 2.2 billion yuan, but the debt ratio continues to rise annually. Whether this Hong Kong IPO can gain market recognition remains questionable.

**Dramatic Revenue and Net Profit Fluctuations in Recent Years, Abnormal Gross Margin Rise Before IPO Sprint**

On August 20, Sichuan Yingfa Ruineng Technology submitted its first IPO application to the Hong Kong Stock Exchange. According to the plan, the company will use 60.6% of the net IPO proceeds to establish and upgrade its Indonesian base, 15.2% for R&D of advanced technologies, 15.2% for enhancing and optimizing sales channels, and the remaining 9.1% for working capital and general corporate purposes.

In June 2023, Sichuan Yingfa Ruineng Technology had submitted an IPO application to the Shanghai Stock Exchange main board, but later decided to terminate the A-share IPO application due to changes in the company's future development strategy and market environment. After this failed listing attempt, the company's performance began to fluctuate dramatically.

Data shows that in 2023, Sichuan Yingfa Ruineng Technology achieved revenue of 10.494 billion yuan, up 85.95% year-on-year, with net profit of 287 million yuan, down 22.44% year-on-year. In 2024, the company achieved revenue of 4.359 billion yuan, down 58.46% year-on-year, with net profit of -729 million yuan, turning from profit to significant loss.

In the first four months of 2025, Sichuan Yingfa Ruineng Technology's revenue was 2.408 billion yuan, up 111.22% year-on-year, with net profit of 355 million yuan, once again turning from loss to profit.

While performance fluctuated dramatically, the company's gross margin also showed abnormal changes this year.

In the first four months of 2025, Sichuan Yingfa Ruineng Technology's gross margin surged dramatically from -7.40% in 2024 to 23.79%, far exceeding Tongwei Co.'s -0.57% (first half data), Junda Co.'s 5.88% (first quarter data), and Aixu Co.'s 3.45% (first half data), with obviously abnormal increases.

The prospectus shows that in 2022, 2023, 2024, and the first four months of 2025, Sichuan Yingfa Ruineng Technology's P-type PERC cell utilization rates were 98.0%, 95.4%, 97.4%, and 0 respectively, while N-type TOPCon cell utilization rates were 0, 79.9%, 91.7%, and 97.8% respectively. The company also stated that by the end of April this year, all its capacity had been converted to mainstream 182mm and larger size cells.

However, the dramatic improvement and abnormal changes in Sichuan Yingfa Ruineng Technology's profitability in the short period before the Hong Kong IPO sprint still deserve market attention regarding the timing.

**Industrial Integration Impact Significantly Weakens Operational Capability, Debt Ratio Still Rises to 68% Despite 2.2 Billion Yuan Raised in 4 Rounds Over 3 Years**

Founded in 2016, Sichuan Yingfa Ruineng Technology is primarily engaged in R&D, production, and sales of photovoltaic cells, with products covering both P-type and N-type cells. According to Frost & Sullivan data, by 2024 shipment volume, Sichuan Yingfa Ruineng Technology is the world's third-largest specialized N-type TOPCon cell manufacturer.

The prospectus shows that from 2022 to 2024, among the top ten global photovoltaic module suppliers by shipment volume, Sichuan Yingfa Ruineng Technology covered 4, 9, and 9 customers respectively.

However, from an industrial chain layout perspective, module manufacturers have significantly increased their use of proprietary cells through vertical integration covering the entire silicon wafer-cell-module chain. This trend means that leading module manufacturers' dependence on external procurement continues to decline, directly weakening the company's core customer resources, especially during the iteration period of high-efficiency cell technologies like TOPCon, where integrated manufacturers tend to prioritize ensuring technology adaptation and cost control of their own capacity.

Additionally, Frost & Sullivan data shows that global N-type TOPCon cell shipments reached 410.8GW in 2024, with market share expected to exceed 80% in 2025, but market size growth rate will slow to 8.9% during the same period.

The vertical integration trend among photovoltaic module manufacturers is reshaping industry competitive landscape. As a specialized cell manufacturer, Sichuan Yingfa Ruineng Technology faces multiple impacts from customer resource loss, overcapacity, and cost pressures, potentially facing greater market share loss risks.

Due to product concentration in photovoltaic cells, under the backdrop of industry giants' integrated industrial layout and overcapacity, the company's operational and performance pressures are increasing daily.

In 2024, Sichuan Yingfa Ruineng Technology's inventory turnover days were 54.97 days, up 5-fold year-on-year, while accounts receivable turnover days were 112.92 days, up 3-fold year-on-year.

From June 2022 to present, Sichuan Yingfa Ruineng Technology has completed four rounds of financing within three years, with cumulative fundraising of approximately 2.224 billion yuan, but the debt ratio continues to rise annually, reaching 68.37% by the end of 2024.

Zhang Min, current general manager and "second-generation leader" of Sichuan Yingfa Ruineng Technology, has publicly expressed hopes to build the company into "the CATL of the photovoltaic industry."

However, whether Sichuan Yingfa Ruineng Technology's Hong Kong IPO can gain full market recognition and whether it can fulfill its vision of becoming "the CATL of the photovoltaic industry" in the future still requires time to verify.