Jiangsu Zhongli Group Co., Ltd., which recently removed its ST status, has once again drawn market attention after three senior executives—the Director and General Manager, the Deputy General Manager and Human Resources Director, and the Chief Financial Officer—resigned at the same time, raising concerns about the company's future direction.
Regarding the concentrated departure of multiple executives, an insider at Zhongli Group described it as an internal management reshuffle with no underlying issues, noting that replacements are already in place and performing their duties normally. Another insider indicated that following this round of leadership changes, adjustments at the middle-management level are imminent, with additional personnel from Jianfa Group expected to join.
Previously, Zhongli Group faced delisting risk warnings and other alerts due to financial statement fraud and improper fund usage by its former controlling shareholder. After Changshu Guangsheng New Energy Co., Ltd., a subsidiary of Xiamen Jianfa Group with local state-owned background, became the controlling shareholder, Zhongli's performance improved in 2025. Although the company still projected a loss, the deficit narrowed by nearly 97%.
Another Reshuffle by Jianfa Affiliates According to insiders, the resigning executives—Director and General Manager Zheng Xiaojie, Deputy General Manager and HR Director Chen Qinghui, and CFO Liao Jiaqi—all originated from the controlling shareholder Jianfa Group. Notably, Zheng Xiaojie completely exited Zhongli, resigning from all positions including Director, Nomination Committee, Investment Decision Committee, and Risk Control Committee, nearly two years ahead of her scheduled term end date of February 5, 2028. Chen Qinghui also resigned from all roles, while Liao Jiaqi, after stepping down as CFO, retained the position of Board Secretary and was appointed as the new General Manager during an interim board meeting.
The insider attributed the leadership overhaul to internal reasons within the controlling shareholder, adding, "After the senior level changes, the middle management will be next," with more Jianfa personnel expected to arrive. Since Jianfa took over Zhongli, management has primarily been overseen by appointees from Jianfa.
On August 21, 2023, ST Zhongli announced signing a restructuring investment agreement with industrial investor Changshu Guangsheng New Energy and its interim administrator. Changshu Guangsheng's controlling shareholders are Xiamen Jianfa Co., Ltd. and Xiamen Xingyuan Investment Co., Ltd., both under Xiamen Jianfa Group. On November 19, 2024, *ST Zhongli disclosed a draft restructuring plan, introducing Guangsheng New Energy to shed historical burdens and upgrade core production capacity, marking Jianfa's takeover.
However, over half a year later, in May 2025, Jianfa Group replaced its chairman, with Xu Xiaoxi succeeding the retiring Huang Wenzhou as Party Secretary and Chairman. Huang, who served as Chairman since March 2017 and later also as Party Secretary, oversaw Jianfa's involvement in Zhongli's restructuring during his final years in 2023–2024.
During that period, Jianfa Co., Ltd. made several acquisitions: Hecheng Shares in 2021, Red Star Macalline in 2023, and Zhongli in 2024. The Macalline purchase faced controversy, with an agreed transaction price of 4.82 yuan per share totaling 6.286 billion yuan; Macalline's current stock price is nearly halved compared to the acquisition price. Jianfa Co.'s recent 2025 performance forecast projects a loss of 5.2 to 10 billion yuan, citing significant asset impairment impacts, including a substantial write-down in Macalline's investment property fair value, combined with goodwill and asset impairments, leading to a one-time huge loss that dragged down consolidated statements.
Analysts suggest that while Jianfa's push to transform Macalline toward home consumption and experiential formats is logically sound, the adjustments in operations, merchant optimization, and revenue restructuring require time, likely increasing costs in the short term without contributing profits. Some view Jianfa's acquisitions as "picking rotten apples."
Underlying Concerns Behind the Reduced Losses The executive reshuffle at Zhongli is likely unrelated to performance, as the 2025 forecast shows an expected net loss attributable to shareholders of 35 to 60 million yuan, narrowing nearly 97% from 2024's 1.174 billion yuan loss. Zhongli attributed the improvement to enhanced operational management, cost-reduction initiatives, and divestment of low-efficiency assets.
In divesting assets, Zhongli acted on December 14, 2025, announcing plans to transfer its 100% stake in Qinghai Zhongli Optical Fiber Technology Co., Ltd. for 951,500 yuan—a steep discount compared to the 30 million yuan paid for a 15.52% stake in 2016. Qinghai Zhongli is insolvent, with operating cash flow of just 283,000 yuan.
Since entering 2026, Zhongli has posted limited recruitment notices for production management trainees, engineers, and general workers, indicating modest hiring. An insider stated that photovoltaic production remains largely normal, with efforts to expand overseas markets. The company flexibly utilizes production capacity, including overseas facilities for lower costs and faster efficiency.
A photovoltaic industry source revealed that while Zhongli previously relied on OEM module production during favorable markets, declining domestic and overseas demand has rendered PV manufacturing a liability. Domestic operations have largely halted, leaving only an aging Thailand plant requiring further investment for upgrades. Currently, Zhongli primarily outsources overseas OEM work, with minimal in-house production.
Zhongli initially entered the PV sector through rural solar projects, leveraging national policies in 2014 to expand poverty-alleviation power stations, earning the title "first poverty-alleviation PV stock." By 2015, accelerated expansion under the "10,000 Farmers PV" slogan peaked in 2017, with such stations becoming the primary revenue source, though Zhongli advanced over 5 billion yuan in funds. Policy shifts later turned these assets into burdens, with high-interest loans, unpaid subsidies, and falling electricity prices causing significant depreciation.
Insiders note that larger distributed stations were sold to China Three Gorges and CNNC Huineng, along with Shajiabang Tourism Co., while many residential PV assets and outstanding state subsidies remain with the listed company, leaving these issues for Jianfa to resolve.
Analysts highlight that the gap between the net loss of 35–60 million yuan and the 240–350 million yuan loss after non-recurring items indicates Zhongli's 2025 improvement heavily relied on one-time gains. While core profitability has improved, the path to genuine breakeven remains long.
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