Shuangliang Eco-Energy Systems Co., Ltd. (600481.SH, hereinafter referred to as "Shuangliang Eco-Energy") announced on October 23 that it plans to issue shares to specific investors to raise up to 1.292 billion yuan. The funds will be used for the construction of a zero-carbon intelligent manufacturing factory, the establishment of a 700-unit green electricity intelligent hydrogen production equipment project, research and development, and to supplement working capital.
Despite having cash reserves of 4.335 billion yuan, the company is viewing hydrogen energy as a path to transformation during the cyclical downturn in the photovoltaic industry, attempting to pivot towards green hydrogen equipment manufacturing.
As of October 24, the company's stock closed at 6.26 yuan per share, down 3.69%.
Shuangliang Eco-Energy primarily focuses on energy-saving environmental protection and renewable energy. The main product categories include photovoltaic products, energy-saving water-saving equipment, and new energy equipment. As of June 30, 2025, photovoltaic products contributed 2.942 billion yuan in revenue, accounting for 67.05% of the company's total revenue.
However, the company is currently in a loss-making position. According to the third-quarter financial report, the company achieved a revenue of 6.076 billion yuan in the third quarter, down 41.27% year-on-year, with a net profit attributable to shareholders of a loss of 544 million yuan. Although the company recorded a net profit of 53.18 million yuan in the third quarter alone, turning a profit compared to the previous year, overall performance remains low, primarily due to declining sales of photovoltaic products influenced by the industry's challenges.
This situation raises questions for many investors, as the company appears to have sufficient funds. By September 30, 2025, Shuangliang Eco-Energy had 4.335 billion yuan in cash, yet it is still pursuing a fundraising of 1.292 billion yuan. The company clarified that the fundraising would support the construction of a zero-carbon intelligent manufacturing factory, the project for annual production of 700 units of green electricity intelligent hydrogen equipment, R&D projects, and to supplement working capital.
This financing decision may stem from increasing debt pressure on Shuangliang Eco-Energy. From the end of 2022 to the end of September 2025, the company's consolidated asset-liability ratios have increased steadily, standing at 68.49%, 76.45%, 82.77%, and 81.91%. In this context, equity financing has become a choice for optimizing its financial structure.
According to the fundraising proposal, the 1.292 billion yuan will be allocated to four key areas: 493 million yuan for the zero-carbon intelligent manufacturing factory, covering efficient air-cooling, liquid cooling intelligent equipment systems, and high-efficiency heat exchangers; 200 million yuan for the production project for 700 units of green electricity intelligent hydrogen equipment to expand hydrogen equipment capacity; another 214 million yuan for R&D projects focusing on intelligent hydrogen equipment, materials R&D, and the development of high-efficiency energy-saving carbon-reduction equipment systems; and 385 million yuan for supplementing working capital to alleviate financial pressures.
Shuangliang Eco-Energy has already embarked on its hydrogen energy journey, having entered the field in 2018 and officially entering the hydrogen energy sector in 2022. The company has since developed a substantial production capacity, creating the largest single unit alkaline water electrolysis system capable of producing hydrogen at 5000 Nm³/h globally.
Since 2025, the hydrogen business of Shuangliang Eco-Energy has seen explosive growth, with orders exceeding 800 million yuan, a year-on-year increase of 300%. In the first half of the year, the company secured hydrogen production equipment orders for the ACME green ammonia project with an annual production capacity of 100,000 tons in Oman and signed a 450 million yuan sales contract for a green electricity hydrogen production system with Hongyang New Energy.
In summary, during the cyclical challenges in the photovoltaic industry, this well-established energy-saving company is making a crucial strategic bet on its future. The nearly 1.3 billion yuan fundraising plan is therefore vital for the company.
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