From September 1 to September 7, only two companies terminated their IPO reviews on the Shanghai, Shenzhen, and Beijing stock exchanges. Both were companies applying to the Shanghai Stock Exchange Main Board: Shaanxi Provincial Hydropower Development Group Co., Ltd. ("Shaanxi Hydropower") and CHINT Solar Digital Energy (Zhejiang) Co., Ltd. ("CHINT Solar"), with sponsor institutions being CITIC Securities and Western Securities, and Guotai Junan Securities respectively.
**Another "A-Split-A" Case Comes to an End**
On September 1, CHINT Solar and its sponsors withdrew their listing application, leading the Shanghai Stock Exchange to terminate the review process. CHINT Solar's controlling shareholder is Zhejiang Chint Electrics Co.,Ltd. (601877.SH), a leading domestic low-voltage electrical equipment manufacturer. Zhejiang Chint Electrics Co.,Ltd. directly and indirectly holds 64.13% of CHINT Solar's shares, with Nan Cunhui as the actual controller.
Regarding the termination of the spin-off listing, Zhejiang Chint Electrics Co.,Ltd. announced that given CHINT Solar's strong business development and rapid performance growth, the company decided to terminate the spin-off listing of CHINT Solar on the Shanghai Stock Exchange Main Board after comprehensive consideration of current market conditions and thorough communication and deliberation with relevant parties to coordinate the company's business development arrangements.
According to the prospectus, CHINT Solar was established in 2015 and has focused on residential photovoltaic business since its inception, maintaining the industry's leading position. By the end of 2024, it had cumulatively developed over 1.6 million residential photovoltaic power stations, with market coverage spanning 29 provinces, autonomous regions, and municipalities, across more than 1,900 districts and counties.
CHINT Solar disclosed that during the reporting periods (2022 to 2024), the company's newly connected residential photovoltaic power station capacity was 7.54GW, 12.53GW, and 13.60GW respectively, with a compound growth rate of 34.30%, consistently maintaining the industry's first position in newly connected residential photovoltaic power station capacity.
From 2022 to 2024, CHINT Solar's operating revenue was 13.704 billion yuan, 29.606 billion yuan, and 31.826 billion yuan respectively, with net profits of 1.753 billion yuan, 2.604 billion yuan, and 2.861 billion yuan respectively, showing continuous growth.
Entering 2025, this growth trend continues. According to the 2025 interim report released by Zhejiang Chint Electrics Co.,Ltd., CHINT Solar achieved net profit exceeding 1.9 billion yuan during the reporting period.
For this IPO, CHINT Solar planned to raise 6 billion yuan, primarily for residential photovoltaic power station cooperative construction projects, information platform construction projects, and supplementing working capital.
Notably, at the end of each reporting period, CHINT Solar's asset-liability ratio was relatively high, at 76.92%, 79.16%, and 80.25% respectively. The company explained that this is mainly because the residential photovoltaic business requires substantial capital strength. As the company's business scale grows rapidly, its own funds cannot meet the continuous expansion needs, requiring funding from banks and other financial institutions, resulting in a relatively high asset-liability ratio.
**Non-GAAP Net Profit Declines 40%**
On September 5, Shaanxi Hydropower terminated its review process. Shaanxi Hydropower's main business involves investment, development, and operation of green clean energy power generation projects including photovoltaic, wind, and hydroelectric power generation. Photovoltaic power generation accounts for approximately 50% of revenue, while wind power generation accounts for about 30%.
During the reporting periods, Shaanxi Hydropower achieved operating revenues of 1.03 billion yuan, 1.082 billion yuan, and 1.06 billion yuan respectively, with net profits of 197 million yuan, 295 million yuan, and 370 million yuan respectively. Notably, operating revenue in 2024 declined nearly 2%. Additionally, in 2024, the company's non-GAAP net profit shrank to 170 million yuan, a year-on-year decline of nearly 40%. Shaanxi Hydropower attributed this mainly to significantly reduced gross margins in hydroelectric power business due to substantially decreased water flow, and declining gross margins in photovoltaic and wind power businesses due to factors such as lower average electricity prices and increased curtailment rates.
Shaanxi Investment Group is Shaanxi Hydropower's actual controller, directly and indirectly controlling 73.71% of Shaanxi Hydropower's shares. Shaanxi Investment Group is a pilot enterprise for state-owned capital investment and operation in Shaanxi Province. Shaanxi Hydropower is the sole operating entity for clean energy power generation business under Shaanxi Investment Group.
Besides CITIC Securities, Shaanxi Hydropower's IPO sponsors also included "sister company" Western Securities, with Shaanxi Investment Group also being Western Securities' controlling shareholder and actual controller.
As another energy subsidiary under Shaanxi Investment Group, Shaanxi Energy Investment Co.,Ltd. (001286.SZ) successfully listed on the Shenzhen Stock Exchange Main Board in April 2023. Despite sharing the same sponsors (CITIC Securities + Western Securities) as Shaanxi Hydropower, Shaanxi Energy Investment Co.,Ltd. and Shaanxi Hydropower reached different outcomes.
During the inquiry process, the exchange also questioned whether Shaanxi Hydropower had business competition with Shaanxi Energy Investment Co.,Ltd. or other subsidiaries under Shaanxi Investment Group.
In response, Shaanxi Hydropower stated that its main business involves investment, development, and operation of green clean energy power generation projects including photovoltaic, wind, and hydroelectric power, while Shaanxi Energy Investment Co.,Ltd.'s main business focuses on thermal power generation, coal production and sales, thus constituting no business competition.
Shaanxi Hydropower's business model is quite similar to Guangxi Beibu Gulf Land and Sea New Energy Co., Ltd., which withdrew its application in March 2024.
