Zoomlion plans to sell additional shares of Taijia Shares, with the two major shareholders cashing out over 360 million yuan last year! The company expects its first annual loss since going public.

Everyday Economic News Reporter | Zhang Guangri Everyday Economic Editor | Wu Yongjiu

Recently, TaiJia Co., Ltd.'s second-largest shareholder, Zhonglian Heavy Industry, announced a plan to reduce its holdings again, intending to sell no more than 3% of its shares. In 2025, Zhonglian Heavy Industry has already implemented two share reduction plans, totaling a 4% decrease, with cash proceeds exceeding 200 million yuan. During Zhonglian Heavy Industry’s share reduction, TaiJia’s controlling shareholder also reduced its holdings, accounting for 3%. In 2025, TaiJia’s net profit is expected to be negative, marking the company’s first loss since going public. A few years ago, TaiJia entered the power supply sector, but its 2023 new energy power and energy storage power projects, as well as related R&D projects, have been terminated. The progress of other fundraising projects has also fallen short of expectations.

On the evening of March 24, 2026, TaiJia announced a pre-disclosure regarding a shareholder holding over 5% reducing their shares. The announcement shows that within 15 trading days after the release, Zhonglian Heavy Industry plans to sell no more than 2,517,375 shares (1% of the total share capital) through centralized bidding, and no more than 5,034,751 shares (2%) via block trades. As of now, Zhonglian Heavy Industry holds 37,940,503 shares of TaiJia, accounting for 15.07%, making it the second-largest shareholder.

As of March 25, 2026, TaiJia’s closing price was 21.28 yuan, with a market value of about 5.357 billion yuan. If Zhonglian Heavy Industry sells 7,552,126 shares at 21.28 yuan, the cash proceeds will exceed 1.6 billion yuan. Notably, Zhonglian Heavy Industry is also listed on A-shares, with a current market value exceeding 70 billion yuan.

According to a review by the “Daily Economic News” reporter (hereinafter referred to as the Daily Reporter), Zhonglian Heavy Industry had already implemented two share reduction plans for TaiJia in 2025, totaling a 4% reduction, with cashing out over 200 million yuan.

From July 3 to August 25, 2025, Zhonglian Heavy Industry reduced 2,517,374 shares via centralized bidding, about 1% of its holdings, at an average price of approximately 20.31 yuan, raising about 51.13 million yuan.

From August 11 to September 5, 2025, it reduced 5,034,750 shares through block trades, about 2%, at an average price of approximately 21.45 yuan, raising about 108 million yuan.

From November 24 to December 9, 2025, it reduced 2,507,373 shares via centralized bidding, about 1%, at an average price of approximately 18.85 yuan, raising about 47.26 million yuan.

Additionally, TaiJia’s controlling shareholder, Changsha Zhengyuan Enterprise Management Co., Ltd. (hereinafter referred to as Changsha Zhengyuan), also completed a share reduction plan in 2025, reducing a total of 3% of shares and cashing out over 160 million yuan.

According to TaiJia’s announcements, from August 12 to August 22, 2025, Changsha Zhengyuan reduced 2,517,300 shares via centralized bidding, about 1%, at an average price of approximately 24.92 yuan, raising about 62.73 million yuan; from August 6 to September 11, 2025, it reduced 5,034,750 shares through block trades, about 2%, at an average price of approximately 20.81 yuan, raising about 105 million yuan. As of now, Changsha Zhengyuan still holds about 20.40% of TaiJia’s shares.

TaiJia has been deeply involved in the saw industry for over 20 years and is a leading enterprise in its niche. By the end of September 2022, the company entered the consumer electronics power supply business and expanded into high-power power supplies, including new products in renewable energy smart photovoltaic, energy storage power, data center power, and station energy power, establishing a dual-core development pattern of “sawing + power supply.”

In 2025, TaiJia’s performance was poor, with the company expecting a net loss, marking its first loss since going public in 2017. The 2025 performance forecast shows a net loss of 22.5 to 32 million yuan, a decline of 144.63% to 163.47% compared to 2024.

(Image source: Screenshot from TaiJia’s announcement)

The main reasons for the decline in TaiJia’s 2025 performance are setbacks in new business development and asset impairment provisions. The forecast indicates that the prices of photovoltaic new energy power supplies are under pressure. The company has actively adjusted the order structure of high-power power supplies, reducing some marginally contributing businesses, leading to a decline in revenue from high-power power supplies. Meanwhile, the company will conduct impairment tests on goodwill and long-term assets of subsidiaries Changsha Botai Electronics Co., Ltd. and Yada Energy Products (Dongguan) Co., Ltd., and will write back some previously recognized deferred tax assets. Preliminary estimates by the finance department suggest these matters will impact net profit by 85 to 94 million yuan.

The Daily Reporter also noted that TaiJia’s previous fundraising projects have faced delays. In 2023, the company raised about 586 million yuan through private placement for five projects: 1. Hard alloy band saw blade production line; 2. High-speed steel double-metal band saw blade production line; 3. New energy power and energy storage power production base; 4. R&D center construction; 5. Working capital supplement and bank loan repayment.

Except for working capital and bank loan repayment, the other four projects are behind schedule. The “R&D center construction” project was terminated shortly after a delay; the “hard alloy band saw blade” and “high-speed steel double-metal band saw blade” projects’ completion dates have been postponed to September 20, 2026; the “new energy power and energy storage power production base” was originally postponed to September 20, 2026, but recent announcements show it has also been terminated.

As of January 31, 2026, the “new energy power and energy storage power production base” had invested about 79.45 million yuan of the raised funds. The company stated that although the project has been terminated, it will consider advancing the project with its own funds based on circumstances.

(Image source: Screenshot from TaiJia’s announcement)

Why are the company’s controlling shareholder and second-largest shareholder reducing their holdings significantly? Do they still believe in the company’s future? Why is the progress of the fundraising projects so slow? The “new energy power and energy storage power production base” has already invested nearly 80 million yuan—does terminating it now constitute a waste of funds? If losses are incurred, will they be reflected in the annual report? The Daily Reporter sent these questions to TaiJia’s securities department email, but as of press time, no reply has been received.

Cover image source: Daily Economic News Media Library