A solar subsidy that once represented industrial promise has now become a sword of Damocles hanging over the listed company.
On January 19, 2026, Zhejiang Bangjie Holding Group Co.,Ltd. announced that, due to the stagnation of its subsidiary's Huai'an solar project, it is being sued by the local government to return 140 million yuan in subsidies plus corresponding interest. More critically, the company's primary bank accounts have been judicially frozen as a result of this matter.
This lawsuit reveals the tense relationship between enterprises and local governments over subsidy funds during the solar industry's adjustment period. The specific reasons for the project's stagnation remain unclear, potentially involving complex factors such as technological route adjustments, funding pressures, or shifts in market demand.
This cooperation, which began with solar ambitions, is now heading towards a legal confrontation. According to the announcement, the Huai'an local government demands that Bangjie's subsidiary return the already disbursed 1.4 billion yuan in industrial support funds and corresponding interest, citing the project's failure to proceed as agreed and its subsequent stagnation.
Behind the lawsuit lies a typical dilemma of the solar industry's adjustment period—local governments hope to introduce emerging industries through subsidies, while companies rely on them to alleviate initial investment pressure. Once the market environment changes, this fragile balance is极易破裂.
The freezing of Bangjie's main bank accounts is not just a routine legal procedure but a dangerous signal of pressure on the company's funding chain. The freezing of a listed company's core accounts directly impacts daily operations, supplier payments, and employee salary disbursements.
The Huai'an solar project was once a key move in Bangjie's business transformation. Public information shows the project had a total investment scale exceeding 10 billion yuan, planning to build high-efficiency solar cell and module capacity, serving as the core vehicle for the company's strategic shift from traditional industry to the new energy sector.
The local government provided comprehensive support including land, tax incentives, and direct financial subsidies, with the disputed 1.4 billion yuan in industrial support funds being a significant component of the subsidy package.
The project's stagnation was not without warning. Since the second half of 2024, the global solar market supply-demand relationship reversed, product prices plummeted, and numerous second and third-tier solar companies already showed signs of idle capacity and project delays. The Huai'an project was likely forced to slow or halt construction under these circumstances.
Bangjie is facing a dual squeeze from transformation pains and funding pressures. This company, primarily focused on seamless apparel, aggressively entered the solar industry in recent years seeking a second growth curve after its traditional business growth weakened.
However, competition in the solar sector proved far more intense than anticipated. Since 2025, industry overcapacity issues have become prominent, with several companies that crossed over into solar experiencing project stalls and investment impairments. The困境 of Bangjie's Huai'an project is a microcosm of this industry phenomenon.
Bank account freezes are particularly致命 for listed companies. This means the funding channels for daily operational activities are severed, potentially triggering chain reactions including supplier payment demands, financial institution loan recalls, and employee stability issues, even touching upon ST risk warning clauses for "primary bank account freezes."
Bangjie's困境 reflects the普遍困境 of the entire solar crossover transformation group. During 2023-2024, dozens of traditional industry listed companies announced entries into solar, sparking a crossover investment boom.
As the solar industry entered a deep adjustment period in 2025, these new entrants lacking technological积累, cost control, and channel advantages were the first to be impacted.
Subsidies promised by local governments during investment promotion are often tied to indicators like project progress, investment scale, and job creation. When companies cannot fulfill commitments due to market changes, subsidy recovery disputes become a common phenomenon. Bangjie's case may be one link in a series of disputes.
Industry analysts point out that the solar industry is shifting from past "scale competition" to a "technology competition" phase, where crossover projects lacking core competitiveness face elimination risks, and the related government-enterprise cooperation models also require re-evaluation.
The impact of this lawsuit on Bangjie could be systemic. The most direct impact is that if the company loses, it must not only return the 1.4 billion yuan principal but also pay potentially millions in interest, a severe test for any company's cash flow.
The deeper impact lies in the heavy blow to the company's credit. Bank account freezes are already high-risk signals in the eyes of financial institutions, potentially leading to reduced loan quotas and increased financing costs. Suppliers may also adjust credit policies, demanding advance payments or shortening payment terms.
The capital market reacted swiftly and negatively. Although specific stock performance requires subsequent trading day data, similar cases often see listed companies facing significant stock price declines and market capitalization shrinkage.
Protecting the rights of minority investors becomes a prominent issue, with questions about accountability for project decision-making errors and the timeliness and completeness of information disclosure becoming regulatory focus areas.
Facing this crisis, Bangjie has several potential response paths. The ideal scenario involves reaching a settlement with the local government, such as renegotiating the project timeline or handling subsidy repayment through installment payments or asset compensation, while applying to lift the account freeze.
The company could also seek to raise funds through asset disposals or private placements, though these operations face significant challenges in the current market environment. Introducing strategic investors or state-owned background partners might be a more feasible option.
From a legal perspective, the company needs to demonstrate that the project stagnation was primarily due to force majeure factors like market conditions rather than its own fault, to争取更有利的判决或调解条件.
Long-term, the company needs to re-evaluate its competitiveness in the solar field, considering收缩战线, focusing on advantageous segments, or partnering with industry leaders to reduce risk.
The solar industry's adjustment continues. Statistics show over 20 originally planned solar projects announced delays or re-evaluations in 2025 alone, involving total investments exceeding 30 billion yuan.
Bangjie's case serves as a warning that industrial transformation cannot rely solely on subsidy drives but must be built on solid technological and market foundations. For local governments, designing more scientific and flexible subsidy mechanisms to balance industrial development with fiscal risk remains an urgent课题.
