A significant merger and acquisition is drawing attention within the photovoltaic industry. Tcl Zhonghuan Renewable Energy Technology Co.,Ltd., a major silicon wafer manufacturer, has detailed its investment plan for DaDao New Energy Technology Co., Ltd.
The company plans to spend a total of 1.258 billion yuan in cash to acquire a 59.14% stake in DaDao New Energy through a combination of share transfers and a capital increase. Additionally, by accepting a voting rights trust for shares, Tcl Zhonghuan Renewable Energy Technology Co.,Ltd. will ultimately control 66.34% of DaDao New Energy, securing absolute control.
It is noteworthy that the pre-investment valuation of DaDao New Energy was only 800 million yuan. By the end of 2025, DaDao New Energy was insolvent. Last year, the target company achieved revenue of 9.279 billion yuan, but reported a net profit attributable to shareholders of -1.97 billion yuan, although the loss narrowed compared to the previous year.
This transaction by Tcl Zhonghuan Renewable Energy Technology Co.,Ltd. aims to strengthen its position in the cell and module segment and accelerate breakthroughs in new technology areas like back-contact (BC) cells. However, with both companies currently reporting losses, whether this acquisition can achieve the anticipated synergistic effect remains to be seen.
According to the announcement, Tcl Zhonghuan Renewable Energy Technology Co.,Ltd. recently signed a series of agreements, including a Share Transfer and Capital Increase Agreement. The company will pay 258 million yuan to acquire an 8.06% stake in DaDao New Energy from 50 shareholders. The share transfer price was differentiated based on the original investment costs of the respective sellers.
Concurrently, Tcl Zhonghuan Renewable Energy Technology Co.,Ltd. will invest 1 billion yuan to subscribe to 661 million new shares, giving it a 55.56% stake post-capital increase. This investment price was negotiated based on the 800 million yuan pre-money valuation.
Following the completion of these transactions, Tcl Zhonghuan Renewable Energy Technology Co.,Ltd. will have invested a total of 1.258 billion yuan for a direct 59.14% ownership. The company will also hold voting rights for an additional 7.2% of shares through trusts from shareholders, including founder Liu Yong and several employee持股 platforms. This brings the total controlled voting rights to 66.34%, and DaDao New Energy will become a subsidiary and be included in the consolidated financial statements.
DaDao New Energy, known as a "dark horse" in the photovoltaic sector with expertise in N-type modules and BC cell technology, had previously attracted significant market interest. The company filed for an IPO on the创业板 in December 2023, aiming to raise 2.5 billion yuan, but its sponsor withdrew the application in August 2024, halting its listing plans.
Reports indicate that in July 2023, DaDao New Energy announced the completion of a Pre-IPO funding round, with a post-investment valuation reportedly nearing 8 billion yuan at that time.
Both companies involved in the deal are currently operating at a loss. Tcl Zhonghuan Renewable Energy Technology Co.,Ltd.'s 2025 annual report showed revenue of 29.05 billion yuan but a net loss attributable to shareholders of -9.264 billion yuan, marking a second consecutive year of losses, although revenue grew and the net loss narrowed annually. The financial report cited an industry supply-demand imbalance and low prices for core products as ongoing pressures.
DaDao New Energy also faces profitability challenges. According to the latest disclosed data, for 2025, DaDao New Energy reported revenue of 9.279 billion yuan and a net loss of -1.97 billion yuan. In 2024, its revenue was 15.607 billion yuan with a net loss of -2.611 billion yuan. By the end of 2025, DaDao New Energy had total assets of 12.887 billion yuan and total liabilities of 14.189 billion yuan.
Tcl Zhonghuan Renewable Energy Technology Co.,Ltd. stated that taking control of DaDao New Energy is a strategic move to capitalize on industry consolidation and meet demands for high-quality development. The core intention is to bolster its industrial chain and gain a foothold in new technologies.
This transaction is seen as a critical step for Tcl Zhonghuan Renewable Energy Technology Co.,Ltd. to accelerate advancements in BC cell technology. The company, through its overseas subsidiary Maxeon, holds core BC cell patents, while DaDao New Energy has existing expertise and production capacity for BC cell modules. Tcl Zhonghuan Renewable Energy Technology Co.,Ltd. indicated that this investment is a key strategic path to synergize its subsidiary's BC patent technology with the target company's manufacturing processes and capacity.
Comments