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 released a deal plan for acquiring a new energy company. It plans to achieve control of the latter through two steps: “equity transfer and capital increase.” Tianqi Materials’ wholly owned subsidiary, Jiujiang Tianqi, has sued 12 defendants for compensation totaling RMB 1.47B.

I. Policy News

SAMR: Focus on preventing and addressing “involution-style” competition in key industries and areas such as the platform economy, solar power, and new-energy vehicles

On March 30, the State Administration for Market Regulation (SAMR) issued a notice on further implementing the Anti-Unfair Competition Law of the People’s Republic of China. It mentions conducting a comprehensive cleanup of “involution-style” competition. Using various anti-unfair-competition measures, it will focus on preventing and addressing “involution-style” competition in key industries and fields such as the platform economy, solar power, lithium batteries, and new-energy vehicles.

National Energy Administration: National electricity market trading volume in January–February grew 25.5% year over year

The National Energy Administration recently released data. In January–February 2026, the country completed a total of 1,192.5 billion kWh of electricity traded in the electricity market, up 25.5% year over year. By trading scope, intra-provincial trading volume was 954.3 billion kWh, up 29.2%; cross-provincial and cross-regional trading volume was 238.2 billion kWh, up 12.7%. By trading product type, medium- and long-term trading volume was 1,033.7 billion kWh; spot trading volume was 158.8 billion kWh. Green electricity trading volume was 48.4 billion kWh, up 7.6%.

II. Company Updates

TCL Zhonghuan plans to control 66.34% of shares in Dao Yi New Energy for RMB 1.26B

On March 30, TCL Zhonghuan (002129.SZ) announced that the company plans to acquire 8.06% of the shares of Dao Yi New Energy Technology Co., Ltd. (hereinafter “Dao Yi New Energy”) for RMB 258 million in cash (before the capital increase). At the same time, the company plans to inject RMB 1.0 billion into Dao Yi New Energy and obtain 55.56% of the shares of Dao Yi New Energy after the capital increase. After completion of the share transfer and the capital increase and delivery, the company will obtain 59.14% of Dao Yi New Energy for RMB 1.26B, and in total receive voting right委托s for 7.2% of the shares, thereby controlling 66.34% of Dao Yi New Energy’s shares.

TCL Zhonghuan said that this transaction invests in key assets that match the company’s long-term strategic requirements. It will help rapidly and efficiently improve the scale of the company’s production capacity for photovoltaic battery modules, and enrich its product and customer mix. In addition, the transaction will help integrate the parties’ product technical capabilities, accelerate breakthroughs in new technologies and products such as BC cells, and enhance the company’s leading advantages in the global solar power industry.

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

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

Shanghai Electric 2025 net profit of RMB 1.21B, up 60.3%

On March 30, Shanghai Electric (601727.SH) released its 2025 annual report. The company achieved operating revenue of RMB 1.21B, up 9.10% year over year; attributable net profit to shareholders was RMB 12.06 billion, up 60.3%. The company plans to distribute a cash dividend of RMB 0.1425 per 10 shares to all shareholders (including tax).

During the reporting period, the company generated new orders of RMB 172.8 billion. Among the new 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 Ganfeng Lithium Battery, a controlling subsidiary

On March 30, Ganfeng Lithium (002460.SZ) announced that the company plans to inject capital into Jiangxi Ganfeng Lithium Battery Technology Co., Ltd. (hereinafter “Ganfeng Lithium Battery”), its controlling subsidiary, at a price of RMB 3 per RMB of registered capital, for a capital increase of no more than RMB 1.0 billion. Because the company’s directors and senior executives participated in the 2020 capital increase of Ganfeng Lithium Battery, this transaction constitutes a related-party transaction, and the related directors have recused from voting. This transaction does not constitute a major asset reorganization and does not need to be submitted to the shareholders’ meeting for review. 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 433 million. The purpose of this capital increase is to enhance Ganfeng Lithium Battery’s funding strength, reduce its asset-liability ratio, and promote the development of its business, which aligns with the company’s strategy.

Shunfa Hengnen plans to acquire the asset group of a photovoltaic power station from Pu Xing Juren for RMB 205 million

On March 30, Shunfa Hengnen (000631.SZ) announced that the company, together with Pu Xing Juren and its wholly owned subsidiary Hangzhou Pu Xing, signed a “Photovoltaic Power Station Acquisition Agreement.” The company plans to acquire asset group(s) of 17 photovoltaic power stations and operation-and-maintenance systems from them using its own funds. The tax-exclusive transfer price of the assets is RMB 181 million; the VAT rate is 13%, with VAT of RMB 23.53 million; the total price including tax is RMB 205 million. The announcement shows that the target power stations include 17 distributed photovoltaic power stations, with total installed capacity of 67.01MW. The project is located in Zhejiang, Jiangsu, Shanghai, Hubei, Anhui, Henan, Hebei, Guangxi, Chongqing, and other places.

Shunfa Hengnen said that because Pu Xing Juren and the company are both controlled by the same ultimate controlling party, this transaction constitutes a related-party transaction, but it does not constitute a major asset reorganization, and does not require approval from relevant authorities. Acquiring the asset group of the photovoltaic power stations will help the company achieve resource integration, further optimize its business structure, drive the speed of its business transformation, increase power generation revenue, enhance profitability, and continuously improve the company’s core competitiveness.

Sungrow 2025 net profit of134.61billion** yuan****, up 21.97%**

On March 31, Sungrow (300274.SZ) released its 2025 annual report. The annual report shows that in 2025 the company achieved revenue of RMB 89.18B, up 14.55%; attributable net profit was RMB 134.61 billion, up 21.97%. By product segment, during the reporting period, the company’s energy storage system revenue was RMB 37.29B, up 49.39%, accounting for 41.81% of total revenue; power electronic conversion equipment such as photovoltaic inverters achieved revenue of RMB 31.14B, up 6.9%, accounting for 34.91% of total revenue; revenue from new-energy investment and development business was approximately RMB 16.56B, down 21.16% year over year.

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

Hailiang’s 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 construct an annual production of 67.5k tons copper foil production line project in Zhuji, Zhejiang. The project will be carried out by a wholly owned subsidiary to be established—Zhejiang Hailiang New Energy Materials Co., Ltd. Construction will be completed in three phases. The total planned investment is RMB 5.05 billion, including fixed-asset investment of RMB 3.85 billion. After all units are fully operational, it will form an approximately 67.5k tons per year capacity for electrolytic copper foil. In the announcement, Hailiang Co., Ltd. stated that this project is intended to strengthen the company’s regional synergy and strategic layout in the new-energy materials industry, and enhance competitiveness and profitability in the high-end copper foil market, aligning with the company’s long-term strategic development.

Tianqi Materials’ wholly owned subsidiary Jiujiang Tianqi sues 12 parties for compensation ofnearly 15billion** yuan****

On April 1, Tianqi Materials (002709.SZ) announced that its wholly owned subsidiary, Jiujiang Tianqi Hi-Tech Materials Co., Ltd., as the plaintiff, filed a civil lawsuit with the Guangdong Provincial Higher People’s Court over a dispute concerning infringement of trade secrets. The court has accepted the case for filing. This lawsuit involves 12 defendants, including Shenzhen Yan Yi New Materials Co., Ltd., Zhejiang Yan Yi New Energy Technology Co., Ltd., and others. The plaintiff alleges that the defendants obtained trade secrets such as its production technology for lithium hexafluorophosphate and lithium bis(fluorosulfonyl)imide through methods such as theft and illegal copying, and used them in related projects. The company requests that the defendants be ordered to stop the infringement, destroy infringing equipment and materials, and jointly compensate for economic losses totaling RMB 67.5k. The announcement stated that, because the wholly owned subsidiary, as the plaintiff, asserts rights, it is expected not to have a direct negative impact on the listed company’s profits and losses for the current period. However, the trial has not yet opened, and the final outcome remains uncertain.

Laplace****Clarification announcement: Did not obtain Tesla photovoltaic project’s “billion-yuan” order

On April 1, Laplace (688726.SH) released a clarification announcement, stating that recently it noticed reports published by media about the company winning the “second phase of Tesla’s photovoltaic project” and that the order size is nearly one hundred billion yuan. To avoid misleading investors, the company clarifies the rumors as follows: After verification, as of now, the company has not obtained the relevant orders. The company has no undisclosed material information that should be disclosed. If it later meets the information-disclosure standards, it will strictly fulfill its information disclosure obligations in accordance with relevant laws and regulations.

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

On April 2, Ningbo Energy (600982.SH) announced that in order to accelerate its pace of development in transformation and upgrading, its wholly owned subsidiary, Ningbo Langchen New Energy Co., Ltd., will acquire 100% of the equity interests and 100% of the shareholders’ creditor claims held by Ningbo Jinlang Zhihui Energy Co., Ltd. and its wholly owned subsidiary Zhanjiang Jinmian New Energy Co., Ltd. for a consideration of RMB 29.6135 million. Among them, the consideration for 100% equity is RMB 15.2562 million. The target companies contain 8 photovoltaic projects. The total capacity of the photovoltaic projects is 10,469.15KW, all adopting the “self-generation and self-use, with excess power fed into the grid” model. It is understood that Ningbo Energy is a listed state-owned enterprise under Ningbo Development & Investment Group, focusing on three main business areas: cogeneration and heat supply, green energy, and investment and trading.