Net assets of -4 billion yuan, a generation-long photovoltaic giant intends to sell itself! Hongyuan Green Energy plans to lead the restructuring of Wuxi Suntech

Every reporter | Zhang Baolian Every editor | Xu Shaohang

Once a globally renowned photovoltaic product manufacturer, Wuxi Suntech Power Co., Ltd. (hereinafter referred to as Wuxi Suntech), has faced a severe insolvency crisis and welcomed a “white knight.”

On the evening of March 25, Hongyuan Green Energy (603185.SH) announced that its holding subsidiary, Hongyuan Photovoltaics (Wuxi) Co., Ltd. (hereinafter referred to as Hongyuan Photovoltaics), signed a “Restructuring Investment Agreement” with Wuxi Suntech and its administrator on March 24, and will lead the bankruptcy restructuring of this former photovoltaic giant as the lead investor.

The core of this restructuring is to establish a company named “New Suntech.” Hongyuan Photovoltaics plans to invest 630 million yuan to lead the establishment of New Suntech, which will then pay Wuxi Suntech 142 million yuan in restructuring investment to acquire the assets necessary for the operation of New Suntech. Regarding this move, Hongyuan Green Energy stated that it aims to leverage Suntech’s brand presence in overseas markets to accelerate the company’s transformation into an integrated international manufacturer.

Hongyuan Green Energy’s subsidiary will lead the establishment of “New Suntech”

Once standing at the pinnacle of the global photovoltaic industry, Wuxi Suntech has now reached the point of “selling itself” for restructuring.

According to a special audit report issued by the Nanjing branch of Rongcheng Accounting Firm, as of May 26, 2025, Wuxi Suntech’s audited total assets amounted to 537 million yuan, while total liabilities soared to 4.578 billion yuan, resulting in a net asset deficit of 4.041 billion yuan, indicating severe insolvency.

The announcement shows that Hongyuan Photovoltaics will take the lead in restructuring Wuxi Suntech. According to the “Restructuring Investment Agreement” signed on March 24, the core operation of this transaction is to establish a “New Suntech” company as the operating entity.

Specifically, the planned registered capital of New Suntech is 1 billion yuan. Among them, Hongyuan Photovoltaics plans to invest 630 million yuan, holding approximately 63% of the equity in New Suntech, and will introduce other investors to jointly form an investment consortium. After the establishment of New Suntech, it will pay Wuxi Suntech 142 million yuan in restructuring investment to acquire its core assets necessary for operation, including the highly valuable “Suntech” brand (including trademark rights, patent rights, and other intellectual property) as well as equity in certain subsidiaries.

This 142 million yuan in restructuring investment will primarily be used to pay Wuxi Suntech’s bankruptcy expenses, common benefit debts, employee claims, taxes, and various debt repayment amounts.

Leveraging Wuxi Suntech’s brand presence can enhance international influence

For Hongyuan Green Energy, this acquisition of Wuxi Suntech is expected to press the “accelerate” button on the company’s globalization strategy.

Wuxi Suntech once had a glorious past; its brand still holds influence in the global photovoltaic market. According to data, Wuxi Suntech was established in January 2001 by Shi Zhengrong, known as the “Father of Chinese Photovoltaics.” Shi Zhengrong obtained a Ph.D. in solar cells from the University of New South Wales in Australia and, upon returning to China, established the company with funding from local enterprises, leveraging technology patents and support from the Wuxi municipal government.

In September 2002, Wuxi Suntech built its first 10-megawatt crystalline silicon solar cell production line, with a capacity equivalent to the total annual output of China’s photovoltaic industry at that time, marking the beginning of rapid expansion. In 2005, Wuxi Suntech became the first Chinese photovoltaic company listed on the New York Stock Exchange, with Shi Zhengrong becoming China’s richest man at that time. From 2010 to 2011, Wuxi Suntech ranked first in global photovoltaic module shipments and consistently topped the “Most Popular Module Supplier” list in the European market.

However, later on, due to overcapacity in the photovoltaic industry and the impact of overseas “double-reverse” tariffs, Wuxi Suntech was ruled by the court to restructure in 2013. Since then, it has still been unable to fully escape the pressure of debt and operational challenges. In 2025, Wuxi Suntech entered the pre-restructuring process again due to financial issues.

Hongyuan Green Energy stated in the announcement that Wuxi Suntech had deeply cultivated the overseas market for many years, accumulating solid brand recognition and customer base. By leveraging Suntech’s existing brand presence, the company can quickly enhance its international influence, reduce the costs of expanding into overseas markets, and accelerate its transformation into an internationally competitive integrated manufacturer.

At the same time, Hongyuan Green Energy believes it has completed a full industrial chain layout covering silicon materials, silicon wafers, cells, and modules, possessing advantages in scale and cost control. Wuxi Suntech, having been deeply involved in the photovoltaic industry for many years, has accumulated corresponding technical expertise and market experience, and the two businesses have a high degree of compatibility and synergy. If this restructuring is successful, the company will rely on its industrial strength, financial reserves, technical talents, and management experience to achieve vertical integration with New Suntech.

However, reviving the brand of a former giant is no easy task. The photovoltaic industry undergoes rapid technological iterations, and market competition is exceptionally fierce. A simple brand revival, if lacking sustained technological innovation and cost advantages as support, still faces significant challenges ahead.

Hongyuan Green Energy also candidly stated in the announcement that Wuxi Suntech has now entered the formal restructuring process. Although the “Restructuring Plan (Draft)” has been approved by the creditor meeting, there remains uncertainty as to whether the draft can be approved by the court after the vote.