Hiconics Eco-Energy Technology Co., Ltd. (Securities Code: 300048) announced a private placement plan on the evening of February 27th, proposing to issue no more than 288 million shares to its indirect controlling shareholder, Midea Group Co.,Ltd., at a price of 5.73 yuan per share. The move aims to raise up to 1.652 billion yuan to fund five major projects, including high-voltage frequency converters, photovoltaic inverters, and residential energy storage systems, as well as to supplement working capital.
Currently, Midea Group holds 209 million shares in Hiconics through its controlled subsidiary, Midea Heating & Ventilation, accounting for 18.50% of the company's total shares. Upon completion of this private placement, the combined shareholding of Midea Group and its acting-in-concert party, Midea Heating & Ventilation, will increase to 35.08%, further consolidating its control over Hiconics.
As of the market close on February 27th, Hiconics' stock price was 7.6 yuan, with a market capitalization of nearly 86 billion yuan.
The private placement will be fully subscribed in cash by Midea Group. The raised funds will be allocated to five core areas: the research, development, and industrialization of high-voltage frequency converters; the research, development, and industrialization of grid-connected photovoltaic inverters; the research, development, and industrialization of residential energy storage systems; the construction of distributed photovoltaic benchmark power stations and related research; with an additional 300 million yuan reserved to supplement working capital. This forms a comprehensive layout encompassing "technology R&D + capacity expansion + financial support."
Hiconics stated that the purpose and significance of this private placement are fourfold: First, to strengthen the position of the controlling shareholder, stabilize the company's control, and enhance corporate governance. Second, to improve the dual-core business layout of electrical equipment and new energy, consolidating its leading industry position and expanding into high-growth sectors. High-voltage frequency converters are Hiconics' traditional strength; related R&D and industrialization projects will achieve intelligent production line upgrades, further boosting capacity and technical prowess. The grid-connected photovoltaic inverter and residential energy storage system projects will leverage Midea's overseas brand and channel resources to capitalize on the strategic period of rapid global growth in these areas, solidifying Hiconics' advantage in the new energy sector. Third, to propel the company's strategic transition from a "photovoltaic power station builder" to a "smart energy operator." Hiconics plans to construct benchmark smart photovoltaic power station projects, selecting premium feed-in tariff regions for EPC projects to be self-owned and operated. These projects will be supported by an AI-powered smart energy operation system for full lifecycle intelligent management and control of the power stations, while also exploring new profit models such as virtual power plants and electricity trading. This initiative will accelerate the company's transformation. Fourth, to solidify its financial strength and optimize its capital structure. It was noted that as of the end of September 2025, Hiconics' asset-liability ratio reached 61.56%. The 300 million yuan allocated for working capital will effectively ease operational funding pressure and reduce financial risks.
Since Midea Group gained control of Hiconics in 2020, Hiconics has seen steady revenue growth, although profit performance has been volatile. A recent performance forecast indicates the company expects to achieve a net profit attributable to shareholders of 50 million to 75 million yuan for 2025, representing a year-on-year increase of 385.62% to 628.43%.
For Midea Group, fully subscribing to Hiconics' private placement not only strengthens its control over the company but also represents a significant step in deepening its "industrial control + new energy" strategy and enhancing its industrial ecosystem. Hiconics' technical expertise in areas like high-voltage frequency converters and photovoltaic inverters complements Midea's businesses in industrial technology and building technologies, making Hiconics an important listed platform for Midea in industrial automation and new energy power electronics. The private placement will foster deeper collaboration between the two in R&D, manufacturing, and market channels, helping Midea integrate the entire chain from "generation-grid-load-storage-heat."
Midea Group is a leading global technology group with businesses spanning smart homes, industrial technology, building technologies, robotics and automation, new energy, health management, and smart logistics. It has established a business matrix emphasizing both To C and To B development, providing consumers with various smart home products and services, as well as offering diverse commercial and industrial solutions to enterprise clients. As of June 30, 2025, Midea Group had over 400 subsidiaries, 38 R&D centers, and 63 major manufacturing bases worldwide, employing more than 190,000 people, with operations in over 200 countries and regions. It maintains 22 overseas R&D centers and 41 major overseas manufacturing bases across more than ten countries.
Midea Group controls several A-share listed companies through direct or indirect means, forming an industrial matrix covering home appliances, new energy, healthcare, and other sectors. These subsidiaries work synergistically to support the group's diversified development.
Beyond Hiconics, Midea Group holds a 45.46% stake in Wandong Medical Technology Co., Ltd. (Securities Code: 600055) (as of the end of Q3 2025), which focuses on medical equipment, aiding Midea's entry into the healthcare sector. Simultaneously, Midea Group holds a 22.79% stake in Shenzhen Clou Electronics Co., Ltd. (Securities Code: 002121), which specializes in smart grids and energy storage. Clou Electronics anticipates a net profit increase of over 100% for 2025 and serves as a key support for Midea's energy storage business.
Additionally, He Qianchang, the daughter of Midea Group's founder He Xiangjian, holds a 25.58% stake in Hitong Advanced Materials Co., Ltd. (Securities Code: 688219) and is the company's actual controller. Hitong focuses on the R&D, production, and sales of polymer modified materials and is a related party to Midea Group with extensive business cooperation. Hitong supplies PEEK materials for Midea's humanoid robot project, used in manufacturing key components like joints and transmission parts. In 2024, Midea Group was Hitong's largest customer, accounting for 25.54% of its sales.
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