12.58 billion yuan! TCL Zhonghuan acquires control of the photovoltaic dark horse

(Source: Veiko.com Solar)

On March 30, TCL Zhonghuan released an announcement regarding its external investment to purchase equity and make a capital increase.

The announcement states that TCL Zhonghuan plans to use cash of RMB 258 million to acquire an 8.06% stake in Dao New Energy (before the capital increase) held in aggregate by 50 shareholders, including Quzhou Zhidao Enterprise Management Partnership (Limited Partnership) and Suzhou Shanshi Equity Investment Partnership (Limited Partnership), among others. At the same time, the company plans to use cash of RMB 1.00 billion to make a capital increase into Dao New Energy and obtain a 55.56% stake in Dao New Energy after the capital increase.

After the completion of the share transfer and the capital injection in this transaction, TCL Zhonghuan will acquire a 59.14% stake in Dao New Energy for RMB 1.258 billion, and in total will accept voting rights entrustment for 7.20% of the shares, for a combined control over 66.34% of the shares of Dao New Energy. After the above transaction is completed, Dao New Energy will become a controlling subsidiary of TCL Zhonghuan and will be included in TCL Zhonghuan’s consolidated financial statement reporting scope.

TCL Zhonghuan states that this transaction aligns with the company’s development strategy. This transaction is a strategic move by TCL Zhonghuan to seize consolidation opportunities in the photovoltaic industry and respond to the industry’s requirements for high-quality development. This transaction further improves the company’s “wafer—batteries—modules” integrated industrial chain layout, strengthens synergy between upstream and downstream businesses, and is conducive to helping the company build the supply chain and strengthen the chain, while improving the level of key technologies. On the other hand, this transaction will strengthen industrial consolidation, improve the quality and efficiency of industrial development, and enhance the efficiency of resource allocation. After the transaction is completed, both parties will gradually phase out low-efficiency and backward production capacity, build an industrial ecosystem for new technologies and applications, and plan to improve the operating situation through measures such as empowerment and collaboration, to support the healthy development of the industry.

This transaction has strong synergy effects. The company’s comprehensive market share for photovoltaic wafer shipments remains the industry’s No. 1. The company is actively developing the battery and module business. Through integrating and optimizing existing production capacity, this investment enables the company to achieve vertical extension and horizontal expansion of its industrial chain, quickly filling gaps in its business areas. This investment is also an important path for achieving synergy between the controlling subsidiary’s BC patented technology and the target company’s BC battery module manufacturing process and capacity. It is a strategic focus of the company. This investment will enable synergy between both parties’ products, brands, channels, and more, providing customers with more comprehensive products and solutions, and comprehensively enhancing market competitiveness.

As a leader in photovoltaic wafers, TCL Zhonghuan, in recent years, has worked hard to address shortcomings in the battery and module business and accelerate the implementation of a reasonable degree of integration strategy. In 2024, its module shipment volume was 8.29GW, increasing to 15.1GW in 2025.

At the same time, TCL Zhonghuan integrates Maxeon’s non-US sales platform and the Sunpower brand to build an overseas sales system and achieve sales breakthroughs across multiple countries and regions.

Dao New Energy is a new-generation company established in August 2018. It has two major core product lines: N-type modules and lightweight modules. It offers full-scenario photovoltaic system solutions across three series: ecosystem photovoltaic, urban photovoltaic, and floating photovoltaic. By 2023, it has built production capacity of 30GW efficient batteries and 30GW efficient modules.

TCL Zhonghuan is a leader in photovoltaic wafers and also has an overseas sales system using the Maxeon non-US sales platform and the Sunpower brand. Dao New Energy has production capacity of 30GW efficient batteries and modules, which can help TCL Zhonghuan speed up补齐 shortcomings in the battery and module business.

It is worth noting that the announcement shows that in 2024, Dao New Energy achieved operating revenue of RMB 15.607 billion and a net profit attributable to the parent company of a loss of RMB 2.611 billion; in 2025, Dao New Energy achieved operating revenue of RMB 9.279 billion and a net profit attributable to the parent company of a loss of RMB -1.970 billion.

By the end of 2025, Dao New Energy had total assets of RMB 12.887 billion and total liabilities of RMB 14.189 billion.

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