Since reaching a short-term peak in early February, the stock price of TCL Zhonghuan Renewable Energy Technology Co., Ltd. (002129.SZ) has experienced a sharp decline. Over a longer period, following the peak of the photovoltaic industry in 2023 and the severe downturn from the second half of 2023 through the first half of 2024, the stock has remained in a bottom consolidation phase with limited upward momentum.

However, over the past two weeks, TCL Zhonghuan has released significant news. First, it reported an annual financial statement showing slight revenue growth but a net loss approaching 10 billion yuan. Subsequently, the company announced an investment of 1.258 billion yuan to acquire a controlling stake in Yidao New Energy Technology.

Interestingly, Yidao New Energy had previously planned an independent IPO, releasing prospectus drafts in December 2023 and June 2024. Its service team was notably robust, with Sinolink Securities Co., Ltd. (600109.SH) acting as the sponsor and lead underwriter, represented by sponsors Meng Jie and Zhao Yimeng, while CITIC Securities (600030.SH) served as the joint lead underwriter.

According to disclosed data prior to the IPO application, Yidao New Energy demonstrated strong performance momentum. It turned a profit in 2022, achieving nearly 200 million yuan in net profit, and further expanded its earnings to 435 million yuan in 2023, a year-on-year increase of 126%. Against the backdrop of severe challenges in the photovoltaic industry, Yidao New Energy's pre-IPO data stood out as exceptionally positive.

Regulators, however, raised concerns about this ostensibly strong performance, issuing a first-round inquiry letter to the company in January 2024. The response from Yidao New Energy, along with Sinolink Securities and CITIC Securities, was notable: they did not reply to the regulatory inquiry for over seven months before voluntarily withdrawing the IPO application in August 2024.

According to the recent announcement from TCL Zhonghuan, after the failed IPO, Yidao New Energy's performance deteriorated sharply. It reported a massive loss of 2.611 billion yuan in 2024 and a further loss of 1.970 billion yuan in 2025, with revenue significantly shrinking in 2025. By the end of 2025, the company was insolvent.

This data raises serious questions. It is fortunate that Yidao New Energy's IPO failed; otherwise, it would have become a classic case of a company collapsing shortly after listing.

This situation also calls into question the roles of the service institutions involved in the IPO. In the sponsorship report, Sinolink Securities emphatically stated that Yidao New Energy possessed "good profitability" and "strong debt repayment capabilities." The stark contrast between these assertions and the subsequent performance collapse warrants reflection on the professional judgment exercised by Sinolink Securities' representatives Meng Jie and Zhao Yimeng, as well as the underwriting team at CITIC Securities.