Where the Money Went: A Founder's Gamble
The founder of a prominent A-share solar energy company saw his personal fortune evaporate by over 10 billion yuan in a single year. Meanwhile, his company had less than 1.1 billion yuan in readily available cash but faced 7.8 billion yuan in interest-bearing debt due within twelve months. In a striking move during this cash crunch, the listed firm spent over 600 million yuan to purchase equipment from another company controlled by the founder himself, all while pushing forward with an aggressive capacity expansion plan costing approximately 17.7 billion yuan. This capital-intensive enterprise is Shanghai Aiko Solar Energy Co.,Ltd. (600732.SH), a specialist in solar cells and modules, particularly known for its advanced back-contact (ABC) cell technology.
Chen Gang, the founder and de facto controller, was listed alongside his wife on the 2023 Hurun Global Rich List with a fortune of 15.5 billion yuan, earning him the title of Ganzhou's richest person. By the 2024 Hurun China Rich List, their wealth had plummeted to 5 billion yuan, a loss of over 10 billion. Though they dropped off the global list in 2025, the couple reappeared on the domestic list with a net worth of 8.8 billion yuan. The pressing question on everyone's mind, including regulators, is precisely where the money has gone.
The Shanghai Stock Exchange (SSE) issued an inquiry letter regarding the company's 2025 annual report, demanding a clear explanation of capital flows and related-party transactions. On August 2nd, Shanghai Aiko Solar Energy Co.,Ltd. responded with a detailed 69-page filing, laying out the financial relationships between Chen Gang, the listed company, and its affiliates.
From Pledge to Related-Party Deals
To understand the 600 million yuan related-party transaction, one must first examine Chen Gang's share pledges. According to the inquiry response, by the end of 2025, Chen Gang and his holding platforms had pledged a cumulative 330 million shares, representing 57.69% of their holdings and 15.57% of the company's total share capital. The stated purpose of these pledges was to fund the subscription of the company's 2022 non-public share issuance. In essence, Chen Gang borrowed money from brokerages against his stock to reinvest in Shanghai Aiko Solar Energy Co.,Ltd. itself.
This pledging activity continues. On June 16, 2026, Chen Gang pledged another 35 million shares to Huaxi Securities, pushing his pledge ratio to 63.6%. Two weeks later, on July 1st, he released 39 million shares, bringing the ratio back down to 51.71%. Despite these fluctuations, the total number of pledged shares has remained around 294 million. While the borrowed money flowed back into the listed entity, Chen Gang has been building a network of upstream and downstream solar companies, many of which he controls or has a stake in.
The first link is Guangdong Pradi Technology Co., Ltd., founded by Chen Gang in 2008, in which he holds a 42.15% stake. Pradi specializes in large-scale profile processing equipment and automated systems, operating two major production bases. Over the years, Pradi has provided guarantees for Shanghai Aiko Solar Energy Co.,Ltd. amounting to hundreds of millions of yuan.
The second link is Zhuhai Maxos. Established in January 2022, this company quickly secured substantial orders from Shanghai Aiko Solar Energy Co.,Ltd.. Between March and September of that year, the subsidiary Zhuhai Fushan Aiko signed three contracts with Zhuhai Maxos, purchasing wet processing equipment, solar cell production equipment, and customized coating equipment. In total, these related-party transactions within six months exceeded 600 million yuan.
The third link involves polysilicon. Chen Gang also holds a stake in Qinghai Lihao. In December 2022, Shanghai Aiko Solar Energy Co.,Ltd. invested 385 million yuan to acquire a 2.78% stake in Qinghai Lihao, a company also partly owned by the ultimate controller. This intertwining raises an unavoidable question: did any of the capital Chen Gang raised through share pledges, after being reinvested in the company, subsequently flow back into entities he controls?
The inquiry letter itself did not conclude this path existed. In its response, Shanghai Aiko Solar Energy Co.,Ltd. stated that its restricted funds were generated from normal operations, that it does not have joint bank accounts with its controlling shareholder, and that no funds have been misappropriated. The company noted that from 2023 to 2025, cumulative payments to Zhuhai Maxos for fixed asset acquisitions represented only 6.66% of total such payments, a relatively low proportion. Independent directors deemed the related-party transactions necessary for normal production, and the accounting firm RSM China issued a report confirming the fairness of the transaction prices.
Financial Strain and Shifting Business Ties
The related-party deals are only one aspect of a larger financial puzzle. As of the end of 2025, Shanghai Aiko Solar Energy Co.,Ltd. reported cash and cash equivalents of 3.679 billion yuan. However, 2.624 billion yuan of this was restricted, representing 71.33% of the total. Bank acceptance bill deposits accounted for 2.26 billion yuan of the restricted funds. The company's margin payment ratio stood at 76.85%, significantly higher than the industry average of 37.86%. This leaves less than 1.1 billion yuan in freely usable cash, against a backdrop of 7.866 billion yuan in interest-bearing debt maturing within one year, with a concentration of maturities in the second and third quarters of 2026.
While the company calculates that combining current funds, operating cash flow, and unused credit lines would leave a surplus of 4.21 billion yuan after repaying all short-term debt, this calculation relies heavily on undrawn credit lines—committed but not yet disbursed bank facilities. Simultaneously, capacity expansion spending continues to escalate. In September 2025, the company completed a 3.5 billion yuan private placement, with 3 billion allocated to its Yiwu Phase VI 15GW high-efficiency cell factory. It also spent 1.5 billion yuan to acquire BC-related patents from TCL Zhonghuan. As of the end of 2025, total investment in in-process ABC production lines reached 17.738 billion yuan.
Another point of focus in the inquiry was the drastic shift in customers and suppliers. In 2025, the module business's revenue share jumped from 45.16% to 70.00%, while the cell business shrank from 48.69% to 22.64%. This structural change led to five new entrants among the top ten customers and five new names among the top ten raw material suppliers. The overlap between customers and suppliers also increased significantly, with overlapping sales and purchases rising markedly from the prior year.
In terms of overseas sales, foreign revenue reached 7.156 billion yuan, or 45.83% of total sales, with the European market contributing 3.955 billion yuan. However, a large majority of these foreign customers have been clients for less than two years. This combination of high short-term debt, minimal available cash, massive expansion plans, and a quickly shifting customer base raises serious questions about the company's financial health. The company's auditor, RSM China, concluded in its response that the changes in customers and suppliers were commercially reasonable, that no fund misappropriation occurred, and that aside from related-party Zhuhai Maxos, no capital flows were directed towards the controlling shareholder.
The Big Bet: Can ABC Technology Deliver?
Born in 1968 in Ganzhou, Jiangxi, Chen Gang graduated from the former Southern Institute of Metallurgy. After starting his career in a state-owned aluminum enterprise in Foshan, he eventually co-founded a company with a Malaysian listed firm, achieving annual revenues exceeding 3 billion yuan. In 2009, at 41, he founded Guangdong Aiko Technology, entering the solar cell industry. Over the following decade, he leveraged mass production of PERC technology to propel Aiko to the forefront of global cell shipments. In 2019, the company went public via a backdoor listing on the A-share market.
Now, Chen Gang has placed all his hopes for a turnaround on ABC (All Back Contact) technology. This technology moves all electrical contacts to the back of the cell, allowing the entire front surface to capture sunlight. According to the company, its ABC modules boast a mass-production efficiency exceeding 25%, topping TaiyangNews' global ranking for 39 consecutive months. Its upcoming fourth-generation module is expected to break the 26% efficiency barrier. Another key advantage lies in silver consumption. With silver prices surging, the company's Zhuhai base has achieved silver-free mass production, and its Yiwu base uses a low-silver process, reducing silver usage by 30% compared to conventional TOPCon cells. Chen Gang has stated that future products will also avoid precious metals.
This technological premium is yielding results in overseas markets, where ABC modules command prices 10% to 50% higher than standard TOPCon modules. Foreign sales grew significantly in 2025. However, the company continues to post losses. Net losses attributable to shareholders were 5.394 billion yuan in 2024 and 1.822 billion yuan in 2025, totaling a cumulative loss of about 7.2 billion yuan over two years. A further loss is expected for the first half of 2026. Encouragingly, losses are narrowing. Operating cash flow turned positive in 2025, and the gross margin improved in the first quarter of 2026.
A Race Between Technology and Debt
As of the close on August 4th, Shanghai Aiko Solar Energy Co.,Ltd. shares traded at 12.4 yuan, giving it a market capitalization of 26.228 billion yuan. Chen Gang and his concert parties hold approximately 27% of the company, representing a market value of roughly 7 billion yuan, but over half of this is already pledged. The company faces a stark reality: on one side is the promise of its advanced ABC technology, showing signs of nearing profitability with a leading efficiency edge and proven overseas premium. On the other is an immense short-term debt burden of 7.8 billion yuan, concentrated in the very quarters where the company hopes to see a turning point, with less than 1.1 billion yuan in accessible cash.
Chen Gang is betting on his technology, but his creditors are waiting for cash. The outcome of this high-stakes gamble in the midst of a solar industry downturn will likely become clear in the third quarter.
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