Weekly Energy News | TCL Zhonghuan Plans to Acquire a Controlling Stake in Yida New Energy; Tianci Materials Subsidiary Sues 12 Parties for Nearly 1.5 Billion Yuan in Claims

This week (March 30–April 3), TCL Zhonghuan’s deal to acquire Dao Yid New Energy was released. The plan is to gain controlling ownership of the latter through two steps: “equity transfer” and “capital increase.” Tianqi Materials’ wholly owned subsidiary Jiujiang Tianqi has filed a lawsuit against 12 defendants to claim damages of RMB 1.472 billion.

I. Policy News

State Administration for Market Regulation: Focus on preventing and addressing “involution-style” competition in key industries and areas such as the platform economy, photovoltaics, and new-energy vehicles

On March 30, the State Administration for Market Regulation issued a notice on further implementing and carrying out the PRC Anti-Unfair Competition Law. It mentioned carrying out an integrated crackdown on “involution-style” competition. By comprehensively leveraging various anti-unfair-competition measures, efforts will focus on preventing and addressing “involution-style” competition in key industries and areas such as the platform economy, photovoltaics, lithium batteries, and new-energy vehicles.

National Energy Administration: Nationwide electricity market transaction volume increased 25.5% year over year in January–February

The National Energy Administration recently released data. In the first two months of 2026, the country cumulatively completed 1,192.5 billion kWh of electricity market transaction volume, up 25.5% year over year. In terms of transaction scope, within-provincial transaction volume was 954.3 billion kWh, up 29.2%; cross-provincial and cross-regional transaction volume was 238.2 billion kWh, up 12.7%. In terms of transaction type, medium- and long-term transaction volume was 1,033.7 billion kWh; spot transaction volume was 158.8 billion kWh. Green power transaction volume was 48.4 billion kWh, up 7.6%.

II. Company Developments

TCL Zhonghuan plans to control 66.34% of Dao Yid New Energy with an investment of RMB 1.258 billion

On March 30, TCL Zhonghuan (002129.SZ) announced that the company plans to use RMB 258 million in cash to acquire 8.06% of the shares of Dao Yid New Energy Technology Co., Ltd. (hereinafter “Dao Yid New Energy”) (before the capital increase). At the same time, the company plans to use RMB 1.0 billion in cash to conduct a capital increase in Dao Yid New Energy and obtain 55.56% of the shares after the capital increase. After the delivery for completion of this share transfer and capital increase, the company will obtain 59.14% of Dao Yid New Energy’s shares with RMB 1.258 billion, and in addition will accept a voting-rights entrustment for 7.2% of the shares in total, thereby controlling 66.34% of Dao Yid New Energy’s shares.

TCL Zhonghuan stated that this transaction invests in key assets that match the company’s long-term strategic needs, which will help it quickly and efficiently enhance the production capacity scale of the company’s photovoltaic cell and module business, and enrich its product and customer mix. In addition, this transaction will help integrate both parties’ product technology capabilities, accelerate breakthroughs in new technologies and products such as BC cells, and enhance the company’s leading advantages in the global photovoltaic industry.

Hongrun Construction: Subsidiary signs an EPC project contract worth RMB 350 million for a photovoltaic power generation project

On March 30, Hongrun Construction (002062.SZ) announced that its subsidiary Anhui Tezhu Electric Power Engineering Co., Ltd. signed the “Xuancheng Honglin Town Goose Mountain Village 100MW Photovoltaic Power Generation EPC General Contract for Tea–Light Complementary Project” with Xuancheng WanHong New Energy Co., Ltd. The contract signing price is RMB 350 million, and the construction period is 317 days. This transaction constitutes a related-party transaction, but it does not fall under major asset restructuring, so approval from relevant authorities is not required.

Shanghai Electric’s 2025 net profit was RMB 1.206 billion, up 60.3%

On March 30, Shanghai Electric (601727.SH) released its 2025 annual report. In 2025, the company achieved operating revenue of RMB 125.959 billion, up 9.10%; and net profit attributable to shareholders was RMB 1.206 billion, up 60.3%. The company plans to distribute a cash dividend of RMB 0.1425 (tax inclusive) per 10 shares to all shareholders.

During the reporting period, the company achieved newly added orders of RMB 172.8 billion. Among the newly added orders, energy equipment accounted for RMB 92.13 billion (including: coal-fired power generation equipment RMB 26.59 billion, nuclear power equipment RMB 9.89 billion, wind power equipment RMB 22.97 billion, and energy storage equipment RMB 13.08 billion), industrial equipment accounted for RMB 44.48 billion, and integrated services accounted for RMB 36.19 billion.

Ganfeng Lithium: Capital increase of no more than RMB 1.0 billion into its controlling subsidiary Ganfeng Lithium Battery

On March 30, Ganfeng Lithium (002460.SZ) announced that the company plans to make a capital increase into its controlling subsidiary Jiangxi Ganfeng Lithium Battery Technology Co., Ltd. (hereinafter “Ganfeng Lithium Battery”) at a price of RMB 3 per unit of registered capital, for an amount of no more than RMB 1.0 billion. Because the company’s directors and senior executives participated in Ganfeng Lithium Battery’s 2020 capital increase, this transaction constitutes a related-party transaction, and the related directors have recused themselves from voting. This transaction does not constitute a major asset restructuring, so it does not need to be submitted to the shareholders’ meeting for consideration. As of the end of 2025, Ganfeng Lithium Battery’s asset-liability ratio was 63.12%, revenue was RMB 10.1 billion, and total profit was RMB 0.433 billion. This capital increase is intended to enhance Ganfeng Lithium Battery’s financial strength, reduce its asset-liability ratio, and promote its business development, which aligns with the company’s strategy.

Shunfa Hengneng plans to acquire the photovoltaic power station asset group of Puxing Jueneng for RMB 205 million

On March 30, Shunfa Hengneng (000631.SZ) announced that the company, together with Puxing Jueneng and its wholly owned subsidiary Hangzhou Puxing, signed a “Photovoltaic Power Station Acquisition Agreement.” The company plans to use its own funds to acquire an asset group consisting of 17 photovoltaic power stations and an O&M system from them. The tax-exclusive price for the asset transfer is RMB 181 million; the VAT rate is 13%, with VAT of RMB 23.53 million; the combined price including VAT is RMB 205 million. The announcement shows that the target power stations include 17 distributed photovoltaic power stations, with a total installed capacity of 67.01MW. The projects are located in Zhejiang, Jiangsu, Shanghai, Hubei, Anhui, Henan, Hebei, Guangxi, Chongqing, and other places.

Shunfa Hengneng stated that because Puxing Jueneng and the company are controlled by the same ultimate controlling party, this transaction constitutes a related-party transaction, but it does not constitute a major asset restructuring situation, and therefore does not require approval by relevant authorities. Acquiring the asset group of photovoltaic power stations will help the company achieve resource integration, further optimize its business structure, promote the speed of its transformation, increase generation revenue and improve profitability, and continuously enhance the company’s core competitiveness.

Sungrow’s 2025 net profit 134.61 billion yuan**, up 21.97%**

On March 31, Sungrow (300274.SZ) released its 2025 annual report. The annual report shows that in 2025, the company’s revenue was RMB 89.184 billion, up 14.55%; and net profit attributable to shareholders was RMB 134.61 billion, up 21.97%. By product category, during the reporting period, the company’s energy storage system revenue was RMB 37.287 billion, up 49.39%, accounting for 41.81% of total revenue; photovoltaic inverters and other power electronics conversion equipment achieved revenue of RMB 31.136 billion, up 6.9%, accounting for 34.91% of total revenue; and the new-energy investment and development business achieved revenue of approximately RMB 16.559 billion, down 21.16% year over year.

Based on the profit distribution proposal, Sungrow plans to use the share capital after excluding repurchased shares already repurchased from the repurchase-dedicated securities account as the base, and distribute cash dividends of RMB 6.9 per 10 shares to all shareholders (tax inclusive).

Hailiang Co., Ltd.: Controlling subsidiary plans to invest RMB 5.05 billion to build a copper foil production line project

On March 31, Hailiang Co., Ltd. (002203.SZ) announced that its controlling subsidiary Gansu Hailiang New Energy Materials Co., Ltd. plans to invest in and build a copper foil production line project with an annual output of 67,500 tons in Zhuji, Zhejiang. The project will be implemented by a wholly owned subsidiary of the proposed Zhejiang Hailiang New Energy Materials Co., Ltd. to be established. The construction will be carried out in three phases, with an estimated total investment of RMB 5.05 billion, including fixed asset investment of RMB 3.85 billion. After all units are put into operation, it will form an annual electrolysis copper foil production capacity of approximately 67,500 tons. In the announcement, Hailiang Co., Ltd. stated that the purpose of this project is to strengthen the company’s regional coordination and strategic layout in the new-energy materials industry, and to enhance its competitiveness and profitability in the high-end copper foil market, consistent with the company’s long-term strategic development.

Tianqi Materials: Wholly owned subsidiary Jiujiang Tianqi sues 12 defendants for claiming nearly 15 billion yuan**

On April 1, Tianqi Materials (002709.SZ) announced that the company’s wholly owned subsidiary Jiujiang Tianqi High-Tech Materials Co., Ltd. filed a civil lawsuit as the plaintiff with the Guangdong Provincial Higher People’s Court regarding a dispute over alleged infringement of trade secrets. The court has accepted the case for filing. This lawsuit involves 12 defendants, including Shenzhen YanYi New Materials Co., Ltd., Zhejiang YanYi New Energy Technology Co., Ltd., and others. The plaintiff alleges that the defendants obtained trade secrets such as its production technologies for liquid lithium hexafluorophosphate and lithium bis(fluorosulfonyl)imide through means such as theft and illegal copying, and used them in relevant projects. The company requests the court to order the defendants to stop the infringement, destroy infringing equipment and materials, and jointly compensate for economic losses of RMB 1.472 billion. The announcement states that because the wholly owned subsidiary is asserting its rights as the plaintiff, it is expected that there will be no direct negative impact on the current-period profit or loss of the listed company. However, the case has not yet been tried, and the final outcome remains uncertain.

Laplace****Clarification Announcement: Did not obtain a “100 billion yuan” order for Tesla’s photovoltaic project

On April 1, Laplace (688726.SH) released a clarification announcement, stating that it has recently noticed reports by the media claiming that the company “Laplace won the second phase contract for Tesla’s photovoltaic project, with an order size of nearly 100 billion yuan.” To prevent the relevant information from misleading a broad range of investors, the company clarifies the rumors as follows: after verification, as of now, the company has not obtained the relevant orders, and it does not have any material information that should be disclosed but has not been disclosed. If the company’s subsequent circumstances meet the information disclosure standards, it will strictly fulfill its information disclosure obligations in accordance with the relevant laws and regulations.

Ningbo Energy: Wholly owned subsidiary plans to acquire 4 photovoltaic project companies with consideration of RMB 29.6135 million

On April 2, Ningbo Energy (600982.SH) announced that, to accelerate its development pace in transformation and upgrading, its wholly owned subsidiary Ningbo Langchen New Energy Co., Ltd. will acquire, for a consideration of RMB 29.6135 million, 100% of the equity interests and 100% of the shareholder’s debt held by Ningbo Jinkang Wisdom Energy Co., Ltd. and its wholly owned subsidiary Zhanjiang Jinmian New Energy Co., Ltd., in four project companies. Among them, the consideration for 100% of the equity interests is RMB 15.2562 million. The target companies include 8 photovoltaic projects, with a combined capacity of 10,469.15 KW, and all adopt the “self-generation and self-consumption, with surplus power fed into the grid” model. It is understood that Ningbo Energy is a listed state-owned enterprise under Ningbo Development and Investment Group, focusing on three major business areas: combined heat and power, green energy, and investment and trading.