A veteran Chinese solar company is navigating its most perilous period yet, marked by a stalled multi-billion-yuan project and a massive compensation claim from local authorities.

Egine PV (600537), also known as *ST Egine, held an extraordinary general meeting on the afternoon of June 16, 2026. At this meeting, the company's pre-restructuring plan was formally approved, securing a crucial 2.334 billion yuan in funding just before a potential delisting. Prior to this, on June 13, the company disclosed that it and its subsidiaries had been involved in seven new litigation and arbitration cases over the past twelve months, with a total claimed amount of 47.0566 million yuan.

From Pioneer to Restructuring

Founded in Changzhou, Jiangsu in 2003 by Xun Jianhua, Egine PV was one of the earliest pioneers in China's photovoltaic industry. In 2011, the company went public on the Shanghai Stock Exchange through a backdoor listing, becoming the first A-share listed company with pure solar module manufacturing as its core business, preceding even the current industry leader, LONGi Green Energy Technology Co., Ltd., by a year.

Leveraging its first-mover advantage and technical expertise, the company quickly established itself. By 2015, it had ranked among the global top ten for module shipments, reaching its peak. However, the solar industry is highly cyclical, with frequent downturns triggered by events like the EU-US "double anti-dumping" investigations, domestic policy shifts, and rapid technological changes, each wave forcing many players out.

In 2019, the founding Xun family transferred control to Qinchengda Investment (later renamed Weizhi Energy), ending the founder-led era. In 2022, as the global energy transition accelerated, the industry entered a historic boom cycle with high demand and rising prices. Egine PV returned to profitability that year, reporting revenue of 9.876 billion yuan and a net profit attributable to shareholders of 127 million yuan. It was in this optimistic market environment that a fateful expansion decision was made.

A 10-Billion-Yuan Dream Shattered by the Cycle

On September 21, 2022, Egine PV announced a major investment plan to build an integrated project in Quanjiao County, Chuzhou City, Anhui Province, with an annual capacity of 10GW for PV cells, 10GW for wafers, and 10GW for modules. The total investment was projected at 10.3 billion yuan.

Construction began swiftly in November 2022. By July 2023, the first cell from the initial-phase cell project rolled off the production line, marking the trial production stage. The original plan was for the first phase's 5 billion yuan investment to build 10GW of cell capacity, with subsequent phases adding wafer and module capacity.

However, the market shifted faster than anticipated. In the second half of 2023, the entire industry fell into a situation where production meant losses, and capacity utilization rates kept dropping. Consequently, Egine PV's Chuzhou base began a gradual shutdown in October 2024. To date, the project has only completed construction for 7.5GW of the planned 10GW cell capacity in the first phase. The remaining 2.5GW of cell capacity and the entire second and third phases for wafers and modules were never initiated.

The project's suspension turned the massive upfront investment into a heavy burden. Matters worsened when, on December 16, 2025, the Quanjiao Economic Development Zone Management Committee served the company a "Hearing Notice." The notice stated that Egine PV had failed to fully fulfill its obligations under the investment and supplementary agreements and proposed administrative decisions including: terminating the agreements; recovering 140 million yuan in government funds already paid; and demanding repayment for construction agency fees, factory rent, and capital occupation costs.

Reports indicate the total claim from the local government amounts to approximately 1.777 billion yuan. By the end of 2025, Egine PV had already recognized payable construction agency and support fees of 1.587 billion yuan. This enormous debt directly pushed the company into insolvency, becoming a key trigger for the pre-restructuring process. The hearing procedures are currently pending, and a final administrative decision has not been reached.

A Glimmer of Hope with Zhongrun's Entry

The failure of the Chuzhou project severely deteriorated Egine PV's financial health. In 2024, the company reported a net loss attributable to shareholders of 2.09 billion yuan. Losses continued in 2025 at 528 million yuan and in Q1 2026 at 65.4823 million yuan. By the end of 2025, the company's net assets were negative 89.3626 million yuan, with an asset-liability ratio of 102.02%.

On April 29, 2026, due to negative net assets in its latest audited annual report, the Shanghai Stock Exchange placed the company under delisting risk warning, changing its stock abbreviation to "*ST Egine." If the negative net asset issue is not resolved before the release of its 2026 annual report, its shares will be delisted.

To address the debt crisis, Egine PV applied for pre-restructuring with the Changzhou Intermediate People's Court in February 2026 and received court filing. After months of effort, substantial progress has been made. The industrial investor is a consortium comprising Ningbo Ruilian Self-owned Capital Investment Partnership and Jiangsu Zhongrun Photovoltaic Technology Co., Ltd.. Zhongrun is one of the fastest-rising companies in the solar sector in recent years, ranking second globally in cell shipments in 2025, behind only Tongwei Co., Ltd..

Upon completion of the restructuring, Ningbo Ruilian will become the controlling shareholder. As the industrial investor, Zhongrun has committed to providing comprehensive support in technology, supply chain, and market access for Egine PV. Furthermore, according to the plan, approximately 2.334 billion yuan in investment funds will be prioritized to repay debts of Egine PV and its subsidiaries, cover bankruptcy expenses and common benefit debts, with the remainder used to supplement working capital.

This 2.334 billion yuan pre-restructuring fund offers a lifeline to pull the loss-making, insolvent, and production-halted Egine PV back from the brink of delisting. Notably, behind the new controlling shareholder Ningbo Ruilian is Dingyi Investment, a domestic asset management platform specializing in distressed enterprise investment and operational management, with cumulative investment scale nearing 30 billion yuan. It has led or participated in the bankruptcy restructuring of several listed and non-listed companies, possessing rich experience in revitalizing troubled firms. Dingyi Investment was also involved in the recent restructuring of *ST Jingang (300093), which just had its risk warning removed last week. There is hope that this "first solar stock" can soon navigate away from its dangerous existential crisis.