This investment move is drawing significant attention within the photovoltaic industry.
On the evening of January 16, TCL Zhonghuan (SZ002129, stock price 8.84 yuan, market cap 35.74 billion yuan) publicly announced an outward investment initiative. The announcement stated that, based on an assessment of industry trends and a full consideration of factors such as both parties' positions in the industrial chain ecosystem, technological layouts, product applications, and customer composition, the company intends to invest in DAS Solar Co., Ltd.
TCL Zhonghuan indicated that this investment would allow the company to quickly address its business shortcomings; furthermore, it could achieve synergies in products, branding, and channels between the two entities, enabling the provision of more comprehensive products and solutions to customers. This proposed outward investment is still in the planning stage.
DAS Solar specializes in the research, development, manufacturing, and sales of high-efficiency solar cells, photovoltaic modules, and system applications. The company had attempted a listing on the ChiNext board at the end of 2023 but ultimately was unsuccessful.
Lu Jinbiao, a consulting expert from the China Photovoltaic Industry Association, commented that TCL Zhonghuan's investment in DAS Solar primarily targets the latter's team. Additionally, with support from strategic capital, DAS Solar has already established itself as a first-tier player on the N-type high-efficiency photovoltaic platform. "Investing in DAS Solar should be a powerful alliance to accelerate the building of integrated capabilities, coming at a critical moment when initial results are seen from 'anti-involution' efforts and the industry is rebounding from its bottom."
TCL Zhonghuan stated that its intention to invest in DAS Solar is to leverage relative advantages in technology, scale, and efficiency to accelerate the company's moderate integration strategy.
It is reported that since 2023, DAS Solar's volume of winning bids for N-type modules has ranked among the top nationally, and the company has accumulated years of R&D reserves across different application scenarios and in areas like BC battery technology.
TCL Zhonghuan disclosed that it has already signed a "Cooperation Framework Letter of Intent" with Liu Yong and Quzhou Zhidao Enterprise Management Partnership. However, the final scope of counterparties to this transaction has not been determined and will be subject to subsequent announcement details. The investment plan also requires further demonstration and communication, and remains uncertain.
Upon completion of the transaction, the board of directors of DAS Solar is to be reorganized, and TCL Zhonghuan will have the right to nominate directors based on its final shareholding percentage in DAS Solar. Specific arrangements for the board reorganization will be stipulated in the final agreement, as will the authority and decision-making mechanisms of the board of directors, shareholders' meeting, and board of supervisors.
Regarding the purpose and impact of this transaction, TCL Zhonghuan stated in its announcement that this investment demonstrates the company's role as an industry leader in promoting industry consolidation and fostering the healthy development of the photovoltaic sector. Furthermore, investing in DAS Solar will help synergistically optimize the company's photovoltaic cell and module capacity while aiding breakthroughs in new technologies and product capabilities like BC (back-contact) cells.
On January 17, Lu Jinbiao expressed in an interview that DAS Solar's advantage lies in its team. The company's founder, Liu Yong, previously held positions such as CTO and COO at JA Solar; on the technological front, at the peak of P-type PERC popularity, he decisively left to start his own business, becoming a leading figure committed to the industrialization of N-type high-efficiency photovoltaics. Additionally, DAS Solar has been joined by Dr. Song Dengyuan, former CTO from Yingli Solar, who is a disciple of "the father of photovoltaics," Professor Martin Green. "More importantly, with strategic capital backing, DAS Solar has already built first-tier capabilities on the N-type high-efficiency photovoltaic platform, entering the ranks of the global top ten PV companies."
"After being acquired by TCL, TCL Zhonghuan has clearly vigorously promoted a strategy to extend the N-type high-efficiency photovoltaic industrial chain, but its breakthroughs in the cell and module segment have noticeably lagged behind other integrated leaders. This investment in DAS Solar is likely intended to create a powerful alliance and accelerate the build-out of integrated capabilities," said Lu Jinbiao.
Public information shows that DAS Solar was founded in 2018 and is one of the fastest-rising newcomers in the photovoltaic field, with Liu Yong as its founder. During its growth, DAS Solar has attracted significant interest from various capital sources.
The website of the Shenzhen Stock Exchange shows that DAS Solar had previously attempted a listing on the ChiNext board, submitting application documents for an initial public offering in December 2023. However, in August 2024, the Shenzhen Stock Exchange terminated the review of DAS Solar's IPO application.
It was noted that following TCL Zhonghuan's announcement of its intent to invest in DAS Solar, several doubts were raised within the industry. Regarding performance, while TCL Zhonghuan's announcement has not yet disclosed DAS Solar's latest financial data, the latter's previous prospectus indicated that the company's debt ratio remained above 85% from 2021 to 2023, significantly higher than comparable peers. On the other hand, TCL Zhonghuan is projected to incur a loss of 8.2 billion to 9.6 billion yuan in 2025.
TCL Zhonghuan mentioned in its announcement that during and after the transaction, both parties will gradually implement the phasing out of inefficient capacity, build an industrial ecosystem for new technologies and applications, and plan to improve the current operational situation through empowerment and synergy.
On January 17, attempts were made to contact TCL Zhonghuan for comment on this investment but no effective response was received.
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