Hongyuan Green Energy plans to invest 630 million yuan through a controlled subsidiary to establish New Suntech, and pay 142 million yuan in restructuring investment, participating in the bankruptcy restructuring of Wuxi Suntech, which has total liabilities of 4.578 billion yuan and negative net assets of 4.041 billion yuan. As of May 26, 2025, Wuxi Suntech's audited total assets were 537 million yuan, and it has entered restructuring proceedings due to insolvency. In terms of transaction structure, Hongyuan Green Energy does not directly assume historical debts; instead, New Suntech will acquire equity in certain subsidiaries, brands, and intellectual property assets of Suntech, while the original 4.578 billion yuan in liabilities remain with the old entity and are settled with a 10 percent equity stake in New Suntech. Hongyuan Green Energy projects a loss of 590 million to 690 million yuan for the first half of 2026, and this investment of several hundred million yuan, along with subsequent production line upgrades and working capital needs, will test its financial resilience. The company, formerly known as Shangji CNC, is advancing full vertical integration of the photovoltaic industry chain, and controlling New Suntech is intended to fill the gap in downstream module operations, but industry overcapacity and integration difficulties cast doubt on strategic synergies. The actual controllers, Yang Jianliang and his son Yang Hao, face dual pressures of capital and operations, and the performance after restructuring remains to be seen.
Wuxi Shangji Automation Co LtdCompany invests 630 million yuan in restructuring Wuxi Suntech despite projecting a 590-690 million yuan loss for H1 2026, straining financial resilience.