Taijia Co., Ltd. terminates the 201 million yuan new energy power supply project; remaining 128 million yuan of raised funds awaiting reallocation.

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On March 20, Hunan Taijia New Materials Technology Co., Ltd. (stock abbreviation: Taijia, stock code: 002843) announced that the company’s board of directors approved the proposal titled “Regarding the Re-Verification and Termination of Certain Fundraising Projects and the Continued Deposit of Remaining Raised Funds in Special Fund Management Accounts,” deciding to terminate the implementation of the “New Energy Power and Energy Storage Power Production Base Project,” and will continue to deposit the remaining raised funds and interest income in the original fundraising account for management. This matter still needs to be submitted to the company’s shareholder meeting for deliberation.

Background and Decision-Making Process for Project Termination

In 2023, Taijia raised a total of 608 million yuan by issuing shares to specific entities, with a net amount of 586 million yuan raised after deducting issuance costs. According to the latest announcement, the company, considering changes in the market environment and its actual situation, decided to terminate the implementation of the “New Energy Power and Energy Storage Power Production Base Project” after re-evaluating some fundraising projects.

The announcement indicates that the project originally planned to invest 201 million yuan of raised funds, mainly for the production of optimizers, inverters, and energy storage converters as photovoltaic products, providing OEM services for brand clients. As of January 31, 2026, the project had accumulated an investment of 79.4292 million yuan from raised funds, with an investment progress of 39.49%.

Changes in Industry Environment and Project Implementation Challenges

Taijia provided a detailed explanation of the reasons for terminating the project in the announcement. In recent years, competition in the photovoltaic power generation market has intensified, coupled with policy adjustments in traditional European and American export markets for photovoltaic inverters, leading to significant fluctuations in market demand. Starting in the third quarter of 2024, the photovoltaic industry began to strengthen self-discipline to prevent “involution-style” vicious competition. Although the price of the photovoltaic industry chain was in a continuous recovery state in 2025, major enterprises in the industry chain were still in a phase of reducing losses.

As an OEM for photovoltaic products, Taijia faces dual pressures: on one hand, it has weak bargaining power in the industry chain, with processing prices under continuous pressure; on the other hand, adjustments in the client order structure have resulted in orders exhibiting characteristics of small batches and multiple batches, making it difficult for the company to achieve economies of scale. These factors have led to a decline in the utilization rate of the established production lines, and the existing capacity is sufficient to meet demand, reducing the necessity for further investment in expansion in the short term.

Use of Raised Funds

As of January 31, 2026, the use of raised funds for each fundraising project is as follows:

• | 1.37 | 0.05% | | Temporarily Deposited Raised Funds (originally “R&D Center Construction Project”) |
• | 29,986.3 |
• |
• | | Total | 608,056.2 | 585,551.6 | 362,530.8 | 61.91% |

For the terminated “New Energy Power and Energy Storage Power Production Base Project,” the specific funding situation is as follows:

Note: The balance of the fundraising account includes temporarily supplemented working capital but has not yet transferred 50 million yuan of idle raised funds back to the special fundraising account. The above financial data has not been audited.

Management of Remaining Funds and Future Planning

The announcement indicates that after terminating this project, Taijia will continue to use the raised funds to pay for outstanding contract balances and warranty funds, and the remaining raised funds will continue to be managed in the original fundraising account. The company states that it is evaluating subsequent new projects and will timely fulfill the review procedures and information disclosure obligations after the evaluation is completed.

Although the current investment in the terminated project is halted, the company assesses that the “New Energy Power and Energy Storage Power Production Base Project” still holds value for the long-term development of the company’s power business, and it will consider advancing the project with its own funds as appropriate in the future.

Opinions of the Board of Directors and Sponsoring Institutions

The company’s board of directors believes that the decision to terminate certain fundraising projects is a prudent one made based on the actual progress of the projects, external macroeconomic and market conditions, and the company’s actual circumstances, and it will not have a significant adverse impact on the company’s normal operations, aligning with the company’s long-term development plan.

After review by the audit committee, it was determined that the necessary review procedures had been followed, in accordance with relevant regulations, and there was no situation that would harm the interests of the company and its shareholders, especially the interests of small and medium shareholders. The sponsoring institution also issued a verification opinion, agreeing with the company’s re-evaluation and termination of certain fundraising projects and the continued deposit of remaining raised funds in special fund management accounts.

This matter still needs to be submitted to the company’s shareholder meeting for deliberation, and Taijia will timely fulfill its information disclosure obligations based on subsequent developments.

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