Yijing Optoelectronics Continues to Post Losses, May Face Insolvency; Seeking Pre-Restructuring Investors Under "Special Treatment" Risk

Recently, Yijing Photovoltaic, regarded as the “First Stock in Photovoltaic Modules,” and its controlling subsidiary have filed for bankruptcy reorganization by creditors. They are currently in the pre-reorganization stage.

In fact, the founder’s departure eight years ago already foreshadowed Yijing Photovoltaic’s difficulties.

In 2017, during the photovoltaic industry rebound, Xun Jianhua initiated a plan to exit. At that time, Shenzhen’s “Old Renovation Tycoon” Qinchengda Group appeared, with its actual controller, Gu Yaoming, purchasing 30 billion yuan worth of the 20% stake in Yijing Photovoltaic held by Xun.

In 2019, Gu and his son officially took over Yijing Photovoltaic, with actions such as stock incentives and billion-yuan project investments. However, from the timeline, Yijing Photovoltaic’s pace of technological shifts—such as PERC expansion and N-type transformation—lagged behind peers. This technological lag, combined with capacity expansion, led to high costs, increasing financial pressure, which eventually exploded.

As of the end of Q3 2025, Yijing Photovoltaic’s asset-liability ratio reached 95.24%, nearing insolvency. According to the 2025 earnings forecast, the company expects a full-year net loss attributable to shareholders of 450 million to 600 million yuan, with net assets potentially turning negative, from -68 million to -130 million yuan.

This means that even without considering the reorganization process, after the 2025 annual report is disclosed, the company’s stock may face delisting risk due to negative net assets, with a “*ST” label, and downward pressure on the stock price.

On February 4, Yijing Photovoltaic was filed for bankruptcy reorganization by creditor Jieyang Energy. On the same day, Kainuo Aluminum also applied for bankruptcy reorganization of Yijing Photovoltaic’s Changzhou subsidiary. On February 5, Changzhou Intermediate Court filed the company’s and its subsidiaries’ pre-reorganization for record.

On February 10, Yijing Photovoltaic announced the creditor declaration and simultaneously issued a “Public Notice for Recruiting Pre-Reorganization Investors.” This recruitment only accepts industry investors or industry consortia formed by industry investors.

According to the listed requirements, interested investors must have a one-time investment capacity of over 500 million yuan, have a clear and feasible plan for the sustainable development of Yijing Photovoltaic’s existing industries (including Changzhou and Chuzhou bases), and have a clear plan for the company’s future sustainable operation; investors or their controlling shareholders/actual controllers should have experience or technology that complements Yijing Photovoltaic’s main business, or be able to provide industry synergy, business resources, or financial support. Under equal conditions, they will be given priority.

On January 17, 2025, Yijing Photovoltaic’s shareholders’ meeting approved the proposal to nominate candidates for the company’s eighth board of directors’ non-independent directors. Three senior managers with strong Inner Mongolia state-owned assets backgrounds—Dai Suhe, Zhao Zhengliang, and Huo Zhiyi—were jointly appointed as non-independent directors. Market speculation suggests that Mengneng Group may take over the company.

Yijing Photovoltaic’s reorganization—from pre-reorganization filing to formal reorganization, and then to the implementation of the reorganization plan and turning losses into profits—is full of uncertainties. Risks of delisting, reorganization failure, and continued operational deterioration are intertwined. Investors should closely monitor court rulings, performance disclosures, and reorganization plan updates. Until the company’s operational situation substantially improves and reorganization risks are fully addressed, a cautious and objective attitude is advised.

Note: This article is generated with AI assistance. The views expressed do not constitute investment advice and are for reference only. Market risks are present; invest cautiously.