Huge losses, lawsuit ridden delisting warning, ST Zhongli welcomes the darkest moment!

Mondo Finance Updated on 2024-02-22

Since stepping on the thunder "private network communication"**, ST Zhongli (002309), which has the reputation of "the first photovoltaic poverty alleviation stock", is in a deteriorating situation and is not optimistic.

On February 20, ST Zhongli announced that its Suqian New Energy, Peixian New Energy, Siyang New Energy and Siyang Electric had started the pre-reorganization procedure in the early stage.

At present, Zhongli Group and its seven subordinate core subsidiaries have officially launched the pre-reorganization or reorganization procedures, and Zhongli Group has identified Changshu Guangsheng New Energy, a wholly-owned subsidiary of Xiamen C&D Co., Ltd., as an industrial investor, and is actively promoting the recruitment of financial investors.

On February 8, ST Zhongli issued an announcement on the lawsuit involving the company and its subsidiaries, saying that three subsidiaries, Zhongli Group, Changshu Zhonglian Optoelectronic New Materials Co., Ltd., Changzhou Marine Cable Co., Ltd. and Suzhou Talesun Photovoltaic Technology, were sued by the Industrial and Commercial Bank of China Changshu Branch, demanding the repayment of the loan principal of 48 million yuan and interest of 11,64667 yuan.

According to an announcement issued by ST Zhongli on February 6, Industrial Bank Co., Ltd. Suzhou Branch (hereinafter referred to as "Industrial Bank") and the company sued the company and its subsidiary Suzhou Talesun Photovoltaic Technology Co., Ltd. (hereinafter referred to as "Talesun Solar") for outstanding loans.

The Suzhou Industrial Park People's Court ruled that: 1. Zhongli returned the principal of 100 million yuan, as well as interest and penalty interest to Industrial Bank, with a total of 104,916,241$16. 2. Zhongli paid 160,000 yuan in lawyer's fees to Industrial Bank.

After the two lawsuits, ST Zhongli needs to repay 1$4.8 billion in loan principal.

In the past 2023, ST Zhongli's operating performance was poor. On January 31, ST Zhongli released its 2023 performance forecast, which is expected to have a net loss of 9 for the whole year of 20232.4 billion - 12500 million yuan.

On the same day, Zhongli Group also issued a suggestive announcement on the possible implementation of delisting risk warning for the company's ** transactions, saying that if the company's audited net assets at the end of 2023 are negative, the company's ** transactions will be subject to a delisting risk warning (** abbreviation is preceded by the word "*st").

The financial report shows that Zhongli Group has suffered substantial losses for many years. In 2020 and 2021 alone, there will be a total loss of 6 billion yuan, and it will still lose 4 in 2022900 million yuan, plus a pre-loss of 9 in 20232.4 billion - 12500 million, a cumulative loss of 74 in 4 years1.4 billion - 77400 million.

What is more shocking is that Zhongli Group has thrown out an astonishing scale expansion plan despite huge losses for many years. In March 2022, Zhongli Group announced that Fuping County**, Zhongwei New Energy, and Talesun Photovoltaic signed a "Cooperation Agreement", which includes an investment of 5 billion yuan to build a 5GW heterojunction cell and 5GW photovoltaic module manufacturing project; 5GW "photovoltaic + modern agriculture" power generation projects with a total EPC value of about 21 billion yuan.

According to ST Zhongli's current financial predicament, Fuping's 26 billion yuan expansion plan may be in vain.

Thanks to the recent ***st Zhongli (002309) since 1A record low of 74 yuan has risen for several days, and today it closed at 204 yuan, the latest market value reported 177.8 billion yuan.

The founder of ST Zhongli is Wang Baixing, who has now retired from the company's management, and the current helmsman is Wang Weifeng, the son of Wang Baixing. (Grassroots PV).

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