Top Ten Photovoltaic Module Enterprises Controlled by State owned Assets

In the inherent impression, the photovoltaic industry can be described as having a "clear division of labor", with sharp and flexible private enterprises focusing on upstream photovoltaic manufacturing, while state-owned enterprises with strong funds and capabilities are galloping downstream photovoltaic power plant development and operation. However, under the implementation of the "dual carbon" strategy and the brutal elimination of photovoltaic capacity, the boundary line has become increasingly blurred, and state-owned enterprises have already actively or passively controlled multiple photovoltaic module enterprises.

The most well-known in the market recently is none other than a new energy company, founded in August 2018. Leveraging the rise of TOPCon technology, it quickly entered the top tier and ranked among the top ten global photovoltaic module shipments. On April 11th, according to the announcement of the Shanghai Municipal Administration for Market Regulation, Quzhou Industrial Holdings Group Co., Ltd. ("Quzhou Industrial Control") will hold no less than 34.05% of the voting rights of a new energy plant and independently control it through a share acquisition and voting rights delegation agreement. Quzhou Industrial Control, which specializes in the construction of housing projects, development and sales of commercial housing, is a subsidiary of Quzhou State owned Assets Supervision and Administration Commission. The entry of state-owned assets into the bureau will undoubtedly bring strong momentum to the subsequent market development of a new energy company. In addition, there is the veteran giant Yingli Energy, and in 2020, the Baoding State owned Assets Supervision and Administration Commission became the largest shareholder of Yingli Energy. Under the support of state-owned assets, Yingli Energy has gradually rejuvenated, with photovoltaic module shipments consistently ranking in the top 10 in the past two years.

In fact, besides Yidao New Energy and Yingli Energy, there are many photovoltaic module companies in the industry controlled by state-owned enterprises.

1. Zhonglai Shares

Established in 2008, Zhonglai Corporation has continuously expanded its backboard business to include solar cells, modules, and photovoltaic applications. In 2014, Zhonglai Corporation successfully entered the capital market.

In multiple business areas, Zhonglai Shares has demonstrated impressive strength, such as its backboard business ranking first in global shipments for two consecutive years in 2021 and 2022; Battery components were once a pioneering representative enterprise of TOPCon technology.

However, since 2020, the original controlling shareholder of Zhonglai Shares has repeatedly attempted to transfer control. Until November 2022, Zhejiang Energy Power finally obtained 19.75% of the maximum voting rights of Zhonglai Shares, and the actual controller of the latter was changed to Zhejiang Provincial State owned Assets Supervision and Administration Commission.

According to the financial report, the entry of state-owned assets into the bureau has provided a powerful source of strength for Zhonglai Shares. In terms of financing, the introduction of policy banks, cross regional bank credit and other methods to broaden financing channels has reduced the company's average financing costs and the proportion of short-term liabilities and restricted monetary funds, meeting the company's funding needs while reducing the cost of using company funds; In terms of research and development innovation, we will promote cooperation between the company and the White Horse Lake Laboratory in Zhejiang Province, and jointly explore the cutting-edge field of photovoltaic technology, helping the company form a scientific and technological innovation ecosystem; In terms of business collaboration, we will strengthen business exchanges between enterprises under the Zhejiang Energy system, leverage their respective business capabilities, and continuously enhance the company's market influence and competitiveness.

Affected by the industry cycle, the net profit of shares in the first half of 2024 was a loss of 306 million yuan, a year-on-year decrease of 229.37%. However, in the third quarter, Zhonglai Shares turned losses into profits.

2. Zhongli Group

Established in 1988, Zhongli Group started with flame-retardant and fire-resistant flexible cables, and later expanded to the field of special cables and optical cables. It was listed on the Shenzhen Stock Exchange in 2009.

In 2011, Zhongli Group entered the photovoltaic industry through the acquisition of Tenghui Photovoltaic, entering the fields of battery module manufacturing and photovoltaic power station business. In 2012, photovoltaic business became the largest revenue of Zhongli Group.

At that time, taking advantage of the trend of photovoltaic poverty alleviation, Zhongli Group began to build photovoltaic poverty alleviation power stations on a large scale, innovatively launching models such as "smart photovoltaics+technology agriculture" and "photovoltaic farms in poverty-stricken villages", and giving people the "first share of photovoltaic poverty alleviation". In 2017, Zhongli Group's revenue was nearly 20 billion yuan, even higher than that of Longi at that time. In terms of module business, Zhongli Group is equally outstanding, breaking into the top ten global photovoltaic module shipments in 2016 and 2018.

But after 2018, with the adjustment of photovoltaic poverty alleviation policies, Zhongli Group entered a downward trend and suffered consecutive losses in performance. To make matters worse, due to being involved in the "private network communication case" scam, Zhongli Group began to explode, with financial fraud, huge non operational funds, and illegal guarantees. In January 2023, Zhongli Group was applied for restructuring by creditors.

In December 2024, the restructuring plan of Zhongli Group was completed, and Changshu Guangsheng New Energy Co., Ltd., a subsidiary of Jianfa Group, became the controlling shareholder of Zhongli, with Xiamen State owned Assets Supervision and Administration Commission as the actual controller.

3. Jinneng Technology

Unlike the previous mid way takeover, Jinneng Clean Energy Technology Co., Ltd. (hereinafter referred to as "Jinneng Technology") was founded on December 31, 2013, and is affiliated with Shanxi state-owned enterprise Jinneng Holdings Group.

Jinneng Technology has long been active in the forefront of the industrialization of heterojunction technology. According to the official website information, in order to cover the market demand for technology routes, Jinneng Technology has laid out the entire product ecosystem, from PERC, TOPCon to HJT, and simultaneously implemented the most promising research and development projects for perovskite/crystalline silicon heterojunction stacked cells. It has successfully built a demonstration line for perovskite/crystalline silicon heterojunction stacked cells, achieving an efficiency of over 28% for calcium silicon stacked cells and an efficiency of over 20% for large-area perovskite modules.

4. State Power Investment Corporation New Energy

In addition to Yellow River Hydropower's involvement in photovoltaic manufacturing, State Power Investment Corporation (SPIC), the global clean energy giant, has also established SPIC New Energy Technology Co., Ltd. (referred to as SPIC New Energy), responsible for implementing SPIC's research project on "Research and Mass Production Technology Development of High Efficiency Copper Grid Line Crystalline Silicon Heterojunction Photovoltaic Cells (C-HJT)".

In 2018, State Power Investment Corporation New Energy established a copper grid heterojunction battery mass production platform in Nanchang High tech Zone, with the production center located in Longgang City. At the end of 2023, the 5GW high-efficiency heterojunction battery and module mass production base of Longgang Base will be put into operation, and efficient heterojunction module products will be gradually delivered to customers. In 2024, Polaris learned that China Power Investment Corporation's new energy heterojunction components will be shipped at a capacity of 600MW.

It is worth noting that State Power Investment New Energy has successfully introduced new strategic investors such as Beijing Lingjun New Energy Technology Co., Ltd., which has gained more recognition from the capital market. However, the actual controller is still the State owned Assets Supervision and Administration Commission.

5. Hengxi Photovoltaic

In June 2023, in order to accelerate the cultivation of a new track in the photovoltaic industry, Shanghai State owned Shanghai Electric established Shanghai Hengxi Photovoltaic Technology Co., Ltd. (referred to as "Hengxi Photovoltaic"), which is responsible for the layout and research and development of high-efficiency heterojunction cells and components.

Hengxi Photovoltaic plans to have a production capacity of 4.8GW high-efficiency heterojunction cells and modules, with the first phase of 1.2GW capacity landing in Haimen District, Nantong City, Jiangsu Province.

In 2024, Hengxi Photovoltaic successively obtained module orders from Shanghai Pudong Development Group, China Energy Engineering Group, National Energy Group, and COFCO Group; In March of this year, Hengxi Photovoltaic signed a 600MW photovoltaic module framework procurement contract with Jiangsu Pengzhi Electric Power Technology Co., Ltd.

6. Runhai New Energy

Another company that has chosen to bet on efficient heterojunction technology is Zhejiang Runhai New Energy Co., Ltd. (referred to as Runhai New Energy), established on December 21, 2021, jointly funded by China Resources Power Logistics (China) Co., Ltd. (a state-owned enterprise), Zhoushan Marine Comprehensive Development Investment Co., Ltd. (a local key state-owned enterprise), and Jiangsu Aikang Technology Co., Ltd., with the first two holding 80% of the shares.

According to the official website information, Runhai New Energy has a total planned battery capacity of 30GW and component capacity of 15GW. The first phase of 3GW batteries and 5GW components will be settled in the Zhejiang Zhoushan High tech Industrial Park.

7. Energy saving solar energy

China Energy saving Solar Energy belongs to the state-owned enterprise China Energy saving Environmental Protection Group, focusing on the development of photovoltaic power stations. At the same time, China Energy saving Solar Energy Technology (Zhenjiang) Co., Ltd. has been established to engage in the manufacturing of photovoltaic cell modules.

As of the first half of 2024, the total production capacity of solar products by China Energy saving Solar Energy Company is 5 GW, including an annual production capacity of 1.5 GW for photovoltaic high-efficiency cells and 3.5 GW for photovoltaic high-efficiency modules (compatible with P-type and N-type production capacity). In 2023, China Energy saving Solar Energy ranks among the top 20 domestic photovoltaic module shipments. In the first half of 2024, the production and sales volume of Zhongenergy-saving solar module modules will be approximately 1.26GW and 1.23GW, respectively.

Affected by the supply-demand imbalance, photovoltaic manufacturing industry chain enterprises have suffered widespread losses. But in the first half of 2024, China Energy saving Solar Module Company achieved a revenue of 1.346 billion yuan and a net profit of 40 million yuan.

8. Runyang Corporation

Founded in 2003, Runyang Co., Ltd. is located in Yancheng, Jiangsu Province. It once focused on the manufacturing of solar cells and has consistently ranked among the top three global solar cell shipments. In 2021, affected by the soaring prices of upstream silicon materials and silicon wafers, Runyang signed investment agreements in Inner Mongolia and Ningxia, moving towards the entire industry chain of silicon materials slicing solar cells modules and photovoltaic power generation.

However, as is well known, since the second half of 2023, the contradiction of overcapacity has become prominent, and the prices of the industrial chain have "bent down" accordingly. The operating enterprises of the entire industrial chain are undoubtedly under enormous pressure.

At the end of June 2024, with the expiration of the approval documents, Runyang Shares' two-year IPO ended in failure. Subsequently, in August, the largest battery cell giant Tongwei announced its intention to acquire Runyang for no more than 5 billion yuan, but the prerequisite is that Jiangsu Yueda Group, a state-owned enterprise in Yancheng, will increase Runyang's shares by 1 billion yuan in cash.

According to public information, in October 2024, Jiangsu Yueda Group increased its capital by 1 billion yuan to complete the industrial and commercial transformation of Runyang New Energy Co., Ltd., becoming the actual controlling shareholder and the single largest shareholder of Runyang. Previously, Jiangsu Yueda Group controlled 19.48% equity of Runyang Holdings through Shanghai Yueda New Industry Group New Energy Co., Ltd., becoming the second largest shareholder of the latter.

However, in February of this year, what was expected to be the largest merger and acquisition in the history of the photovoltaic industry ultimately ended in termination. But with the support of state-owned assets, the Runyang production base has fully resumed work and production.

9. Daycare photovoltaic

Jiangsu Daycare Photovoltaic Technology Co., Ltd. (referred to as Daycare Photovoltaic) was established in 2012 and is currently a state-owned holding company under Wuxi Industrial Development Group.

According to the official website, the production capacity of day care photovoltaics covers the entire industry chain of battery, core materials, and module production. It already has 2 major industrial bases and 5 large production factories, with a battery production capacity of 4GW and a module production capacity of 3GW.

In terms of technological roadmap, daycare photovoltaics can be described as unique, committed to the industrialization of MWT (Efficient Back Contact) technology, and based on MWT back contact technology, MBC (Metal Back Contact) back contact products have also been launched. In terms of application market, daycare photovoltaics are deeply involved in the distributed photovoltaic market and are a leader in the lightweight photovoltaic segment.

In addition to the top ten photovoltaic module companies mentioned above, there are actually state-owned assets behind many photovoltaic module companies, such as Huasheng New Energy, a leading heterojunction enterprise, and Xuancheng Kaisheng Group, a local state-owned enterprise, which holds a relatively high proportion of shares; Fiber nano photovoltaics, which leads perovskite technology, has successively received capital investment from Three Gorges and Beijing Energy; Heterojunction new noble power investment legend, with CGN holding about 11.9% of the shares

Previously, Polaris had focused on the layout of local state-owned enterprises in photovoltaic manufacturing (local state-owned enterprises, "taking over" photovoltaic manufacturing). Under the new round of reshuffle, the army of central state-owned enterprises in photovoltaic manufacturing is rapidly expanding.