On the evening of October 23, Shuangliang Eco-Energy Systems Co., Ltd. (600481.SH) announced the termination of its A-share issuance plan for specific investors for 2023 (known as "targeted issuance") through more than ten consecutive announcements. According to its issuance plan disclosed in December 2023, the targeted issuance aimed to raise no more than 2.56 billion yuan (including the principal), with funding primarily allocated for a 38GW large-size monocrystalline silicon pulling project, annual production of 700 sets of green electricity intelligent hydrogen production equipment, and supplementing working capital.
Concerning the reasons for the termination, Shuangliang Eco-Energy indicated that the decision was based on a comprehensive consideration of the external environment, market conditions, and the company's actual situation and development strategy, following thorough discussions and careful analyses with relevant parties.
Alongside the termination of the original fund-raising plan, Shuangliang Eco-Energy unveiled a new stock issuance proposal for 2025. This new plan proposes to raise no more than 1.292 billion yuan, marking a reduction of approximately 50% compared to the previous scale. The funds will primarily be directed toward the construction of zero-carbon intelligent manufacturing facilities (including efficient air-cooling, liquid cooling intelligent equipment systems, medium and high-temperature heat pumps, and high-efficiency heat exchangers), annual production of 700 sets of green electricity intelligent hydrogen production equipment, an intelligent hydrogen production equipment and materials R&D center, and R&D for high-efficiency energy-saving and carbon reduction equipment systems.
A comparison of the two fundraising plans reveals significant changes in the allocation of funds. Notably, the new investment plan from Shuangliang Eco-Energy no longer includes the originally planned investments in the photovoltaic sector's monocrystalline silicon pulling projects. Instead, the focus has shifted towards energy-saving and carbon-reduction intelligent equipment and green electricity intelligent hydrogen production equipment for zero-carbon industrial parks.
In response to these changes, Shuangliang Eco-Energy stated that the company is adjusting its business focus in light of the current shifts in the photovoltaic market, while also aligning with national policies on energy conservation, carbon reduction, and the production of green hydrogen and ammonia. This adjustment aims to enhance profitability and optimize the financial structure.
According to Shuangliang Eco-Energy's plans, this financing aims to build a world-class zero-carbon intelligent equipment construction platform and to enhance energy-saving and carbon-reduction capabilities as well as green hydrogen production capacity. The focus will be on overcoming challenges in hydrogen production equipment and materials, as well as high-temperature heat pumps, and establishing a strong R&D foundation.
Financial reports show that Shuangliang Eco-Energy's business primarily covers energy conservation, water saving, and photovoltaic new energy sectors. Its specific products include lithium bromide chillers and heat pumps, electric heat pumps, electric refrigeration systems, polysilicon reduction furnaces and modules, green electricity intelligent hydrogen production equipment, monocrystalline silicon rods and wafers, and high-efficiency photovoltaic modules.
In 2024, revenue from Shuangliang Eco-Energy's photovoltaic new energy business accounted for 75% of total revenue. However, the profitability of this segment significantly declined due to an imbalance between supply and demand in the industry and ongoing product price reductions.
In 2024, the operating revenues for Shuangliang Eco-Energy's three major business segments—energy-saving and water-saving equipment, new energy equipment, and photovoltaic products—were 3.002 billion yuan, 946 million yuan, and 8.862 billion yuan, representing year-on-year changes of 1.35%, -64.66%, and -48.7%, respectively; the gross profit margins were 26.77%, 35.37%, and -16.63%, with year-on-year variances of 0.85%, -9.42%, and -24.86%. The company faced losses exceeding 2.1 billion yuan for the year, with losses nearing 600 million yuan in the first half of 2025.
However, by the third quarter of 2025, the company's net profit showed some improvement, reporting an operating income of 1.688 billion yuan, down 49.86% year-on-year; the net profit attributable to shareholders was 53 million yuan, reflecting a 164.75% increase year-on-year.
Regarding the variation in performance, Shuangliang Eco-Energy explained that the decrease in operating income was primarily due to a reduction in sales of photovoltaic products, while the recovery in profits was attributed to the company's ongoing implementation of lean management practices, quality enhancement, efficiency improvements, and decreasing costs for photovoltaic products along with a rebound in monocrystalline silicon prices.
It is noteworthy that in the new fundraising proposal, Shuangliang Eco-Energy plans to use 385 million yuan to supplement its working capital. From the end of 2022 to the end of September 2025, Shuangliang Eco-Energy's consolidated asset-liability ratios were 68.49%, 76.45%, 82.77%, and 81.91%, indicating an overall upward trend. The company indicated that this fundraising will assist in meeting the increasing capital demands arising from its expanding operations, optimizing its financial structure and reducing financial risks.
Comments