The ongoing, deep-seated restructuring within the solar photovoltaic industry continues under cyclical pressures. According to incomplete public statistics, in just the past six months, over 30 solar companies have successively fallen into bankruptcy, liquidation, or restructuring. While many lament the sector's difficulties and the operational pressures on businesses, the other side of the coin warrants equal scrutiny—increased capital investment and the quiet entry of new players are adding a different dimension to this industry-wide shakeout.

White Knights Emerge

Among major industry players, the most closely watched restructuring cases currently are those of Qinghai Lihao and Wuxi Suntech. In February this year, Tongwei Co., Ltd. officially announced it was planning to acquire 100% equity in Qinghai Lihao through a combination of share issuance and cash payment. However, as of May, this significant acquisition was reportedly still in the due diligence and business negotiation phase. Meanwhile, the industry's "dark horse" spanning the entire solar chain, Hongyuan Green Energy Co., Ltd., which took over the trusteeship of Wuxi Suntech last year, moved a step closer to formally acquiring this veteran giant by signing a "Restructuring Investment Agreement" in March.

Another solar industry veteran, Zhongli Group Co., Ltd., completed its restructuring by the end of 2024, with its new controlling shareholder becoming Changshu Guangsheng New Energy Co., Ltd. (hereinafter "Changshu Guangsheng"), which is affiliated with the state-owned enterprise Xiamen C&D Inc.. From a market dynamics perspective, Xiamen C&D Inc. had already invested in downstream solar power station development and was extending further upstream. Having previously managed Wuxi Suntech, its acquisition of Zhongli Group further complements its solar industry chain.

Furthermore, at the heart of the restructuring vortex are numerous cross-sector companies. Currently, companies including Jingang Solar Co., Ltd., *ST Lingda, *ST Yingli Green Energy Holding Co., Ltd., *ST Bangjie Co., Ltd., *ST Tianyi, *ST Quanwei, and *ST Shijing are undergoing restructuring. Among these, Jingang Solar and *ST Lingda have completed their restructuring processes; *ST Yingli, *ST Bangjie, and *ST Tianyi have signed restructuring investment agreements; *ST Quanwei is recruiting restructuring investors; and *ST Shijing has just initiated preliminary restructuring.

Regarding the "white knights," Jingang Solar's restructuring was still taken over by its original controlling shareholder, Guangdong Oho Group, which owns the well-known home decoration brand "Boloni." In April 2021, to capitalize on the "dual carbon" policy tailwinds, Guangdong Oho Group took control of Jingang Solar. For *ST Yingli, often called the "first solar module stock," the restructuring investors include not only the professional restructuring capital platform Ningbo Ruilian but also the industry's leading solar cell manufacturer, Zhongrun Optoelectronics Technology Co., Ltd.. However, according to the agreement, Ningbo Ruilian will gain actual control of Yingli Green Energy upon completion of the restructuring.

*ST Lingda, *ST Bangjie, and *ST Tianyi are all being taken over by companies not directly related to the solar industry chain. For instance, the new controlling shareholder of *ST Lingda is Jinzhai Jinwei Semiconductor Materials Co., Ltd., whose controlling shareholder is Hefei Weidi Semiconductor Co., Ltd., with Peng Qian as the actual controller, who is also the actual controller of the ChiNext-listed company Wuhan Jingce Electronic Group Co., Ltd.. The restructuring investor for *ST Bangjie is determined to be Meinian Onehealth Healthcare Holdings Co., Ltd., primarily engaged in professional health examination services. *ST Tianyi is "joining hands" with Beijing New Zicai Zhi Technology Partnership (Limited Partnership), which serves as the entity through which Beijing Ziguang Tongxin Technology Group Co., Ltd. participates in *ST Tianyi's restructuring investment.

Diverging Paths Forward

With the entry of new capital and new helmsmen at the wheel, the strategic direction of these reborn enterprises has become a focal point for the market. Will they persist in their existing business lanes or make drastic cuts to survive? Different companies have made distinct choices.

For Zhongli Group, benefiting from a high degree of alignment with the core business of its controlling shareholder Changshu Guangsheng's parent, Xiamen C&D Inc., the company's direction remains unchanged. It continues to focus on its cable business while optimizing its solar operations, with the industrial synergy between the two creating a "win-win" situation. According to reports, Zhongli Group can not only leverage Xiamen C&D's supply chain advantages in cable raw materials but also utilize its strong real estate segment to expand into cable markets for home decoration and construction. Its solar business can rely on Xiamen C&D's property and real estate resources to promote complementary projects like solar-charging-storage systems. For Xiamen C&D Inc., this move extends its reach into the manufacturing of modules and cable products, completing the transition from supply chain to integrated industry chain.

Jingang Solar is another company sticking to the solar track. Oho Group will continue to support Jingang Solar in focusing on the HJT technology path, consolidating its first-mover advantage, and leveraging its leading scale capabilities to give the company a competitive edge in securing market and customer access. Simultaneously, Oho Group has prepared a "Plan B" aimed at cultivating a "second growth curve." It plans to partner with industry collaborators to introduce computing power operations for Jingang Solar, aiming to transform it into a computing infrastructure operator with green energy advantages.

*ST Lingda has chosen to steadily advance its "solar power generation + solar EPC" business while divesting its inefficient solar cell assets. More importantly, leveraging the new chairman's extensive experience in semiconductor advanced process inspection and measurement equipment, new energy lithium battery high-end equipment, and electrochromic EC film semiconductor materials, *ST Lingda will transition towards new quality productive forces, gradually introducing new business in the advanced intelligent manufacturing sector in a phased manner.

In contrast, *ST Bangjie plans a complete "makeover." According to the draft plan, during the preliminary restructuring or restructuring process, the entire solar assets and equity will be separated from Bangjie's holdings, either by establishing a trust plan or through public asset auctions. Leveraging the industrial resources of its restructuring investor, the company will subsequently focus intensively on the medical and health intelligent hardware industry, increasing its industrial layout to achieve a business structure transformation.

At the cyclical trough, the industry is undergoing a rigorous selection process. Following the collapse of corporate giants, what emerges may be rebirth, or an entirely new beginning.