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

Daily Economic News Reporter | Zhang Baolian
Daily Economic News Editor | Xu Shaohang

Once a globally renowned manufacturer of photovoltaic products, Wuxi Suntech Power Co., Ltd. (hereinafter Wuxi Suntech), has fallen into severe insolvency. However, it has now welcomed a “white knight.”

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

The core of this restructuring is the establishment of a new company called “New Suntech.” Hongyuan Photovoltaic plans to invest 630 million yuan to lead the creation of New Suntech. In turn, New Suntech will pay Wuxi Suntech 142 million yuan in restructuring investment funds to acquire assets necessary for its operations. Hongyuan Green Energy stated that this move 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 a leader at the top of the global photovoltaic industry, Wuxi Suntech has now reached a point of “selling itself” for restructuring.

According to a special audit report issued by Rongcheng Certified Public Accountants Nanjing Branch, as of May 26, 2025, Wuxi Suntech’s audited total assets were 537 million yuan, while total liabilities reached 4.578 billion yuan, with net assets at -404 million yuan, indicating severe insolvency.

The announcement shows that Hongyuan Photovoltaic will lead the restructuring of Wuxi Suntech. Under the “Restructuring Investment Agreement” signed on March 24, the key operation is to establish a “New Suntech” company as the operating entity.

Specifically, the registered capital of New Suntech is planned to be 1 billion yuan. Hongyuan Photovoltaic intends to contribute 630 million yuan, holding approximately 63% of New Suntech’s equity, and will invite other investors to form an investment consortium. After its establishment, New Suntech will pay Wuxi Suntech 142 million yuan in restructuring funds to acquire core assets needed for its operations, including the highly valuable “Suntech” brand (including trademarks, patents, and other intellectual property rights) and some subsidiary equity.

This 142 million yuan restructuring investment will mainly be used to pay for Wuxi Suntech’s bankruptcy expenses, common benefit debts, employee claims, taxes, and various creditor repayments.

Leveraging Wuxi Suntech’s brand legacy to enhance international influence

For Hongyuan Green Energy, this acquisition of Wuxi Suntech could serve as a “fast-forward” button for its global expansion strategy.

Wuxi Suntech once had a glorious past. Its brand still holds influence in the global photovoltaic market. Records show that Wuxi Suntech was founded in January 2001 by Shi Zhengrong, known as the “Father of Chinese Photovoltaics.” Shi earned a Ph.D. in solar cell technology from the University of New South Wales in Australia. After returning to China, he leveraged technological patents and support from the Wuxi municipal government to co-found the company with local enterprises.

In September 2002, Wuxi Suntech built its first 10 MW crystalline silicon solar cell production line, which at the time matched China’s total photovoltaic output over many years, marking the start of rapid expansion. By 2005, Wuxi Suntech became the first Chinese photovoltaic company listed on the New York Stock Exchange, and Shi Zhengrong became China’s richest person at that time. Between 2010 and 2011, Wuxi Suntech topped global solar module shipments and was long ranked among the “Most Popular Module Suppliers” in Europe.

However, later, due to overcapacity in the photovoltaic industry and issues like “double anti” (anti-dumping and anti-subsidy measures) abroad, Wuxi Suntech was court-ordered into restructuring in 2013. Since then, it has struggled to fully escape debt pressures and operational challenges. By 2025, Wuxi Suntech again entered pre-restructuring due to financial issues.

Hongyuan Green Energy stated in the announcement that Wuxi Suntech has cultivated a solid brand recognition and customer base in overseas markets over many years. Relying on Suntech’s existing brand legacy, the company can quickly enhance its international influence, reduce costs in overseas market development, and accelerate its transformation into an internationally competitive integrated manufacturer.

Additionally, Hongyuan Green Energy believes it has completed a full industry chain layout covering silicon materials, wafers, cells, and modules, with advantages in scale and cost control. Wuxi Suntech, with its deep experience in the photovoltaic industry, possesses relevant technological accumulation and market expertise. The two businesses are highly compatible and synergistic. If the restructuring succeeds, the company will leverage its industrial strength, financial reserves, technical talent, and management experience to achieve deep vertical integration with New Suntech.

However, reviving a former giant’s brand is no easy task. The photovoltaic industry evolves rapidly, and market competition is fierce. Without continuous technological innovation and cost advantages, simply reviving the brand faces significant challenges.

Hongyuan Green Energy also openly acknowledged that Wuxi Suntech has now entered formal restructuring. Although the “Restructuring Plan (Draft)” has been approved by creditors’ meetings, whether it will be approved by the court remains uncertain.