Reporter Zhang Yingying and Wu Kezhong report from Beijing

After more than a year of preparation, PV giant Trina Solar (688599. SH) announced the collapse of the listing of its spin-off subsidiary.

On the evening of December 8, Trina Solar announced that it had decided to terminate the listing of its holding subsidiary, Trina Fujia Energy Co., Ltd. (hereinafter referred to as "Trina Fujia", formerly known as Jiangsu Trina Smart Distributed Energy Co., Ltd.).

"The termination is a strategic decision made by the company based on the development trend of the industry and its own advantages." Trina Solar said that the company will transform and upgrade from a traditional photovoltaic product manufacturer to a total solution provider of photovoltaic and energy storage smart energy, and provide accurate and differentiated solutions for different customers based on various application scenarios. Trina Solar has a comprehensive layout of photovoltaic modules, photovoltaic brackets, energy storage systems and other products, and is also an industry leader in distributed systems and centralized solutions.

Trina Solar emphasized that Trina Solar's distributed system business and operation and maintenance business are the sectors closest to end customers, providing customers with full life cycle services. This segment will become an important part of Trina Solar's solution development strategy, and will be fully integrated with other product business segments to jointly promote the company's strategic goal of becoming a total photovoltaic smart energy solution provider.

Regarding the impact of the termination of the spin-off listing, Trina Solar told the reporter of China Business Daily: "Considering that there will be great development in the new power system market in the future, after the termination of the listing and the return of Trina Fujia, there is no need to consider issues such as independence and related party transactions, which is very friendly to the overall development of the company." ”

Founded in 1997, Trina Solar is one of the earliest companies in China to enter the photovoltaic field. It has an integrated production capacity of photovoltaic silicon wafers, cells and modules, and its module shipments have ranked among the top three in the industry for many years. In addition, the company also has photovoltaic brackets, energy storage and other businesses. However, due to the mismatch between supply and demand in the photovoltaic industry, Trina Solar lost 847 million yuan in the first three quarters of 2024.

Founded in October 2016, Trina Fujia is the first company in the industry to introduce the concept of original photovoltaic systems, covering the sales of residential photovoltaic products.

As of the first half of 2024, Trina's Fujia business has provided original power stations and services to more than 1.2 million users, and the scale of photovoltaic power plants operated and maintained has reached 14GW. According to the announcement, in terms of photovoltaic distributed systems, Tianhe Fujia ranks among the top two in the world, with a market share of nearly 20% in the domestic residential market.

The reporter checked the financial report and found that in 2023, Tianhe Fujia will achieve a net profit of 421 million yuan. However, in the first half of 2024, Tianhe Fujia's net profit will only be 30 million yuan, a sharp decline from 349 million yuan in the first half of 2023.

It is worth mentioning that in the past year, the distributed photovoltaic market has also faced the challenge of difficulty in consumption and market-based electricity transactions. Relevant data show that in the first three quarters of 2024, the newly installed capacity of photovoltaic will be 160.88GW, of which the installed capacity of distributed photovoltaic will be 85.22GW, and the proportion of distributed installed capacity of residential will decrease to 22.8GW.

With the construction of new power systems and the opening of market-oriented electricity transactions, the uncertainty of investment returns of distributed photovoltaic power stations has increased. This has also become the most concerned issue for investors at present. To this end, Trina Fortune has taken the lead in providing smart energy services in the fields of green power trading, carbon asset management, and photovoltaic + energy management solutions, helping customers efficiently operate energy assets, increase asset value, and enjoy more energy services.

The reporter noted that Trina Solar terminated the listing of its spin-off subsidiary, which is not the first case in the photovoltaic industry.

In June 2024, Jingsheng Electromechanical (300316. SZ) also announced the termination of the listing of its spin-off subsidiary, Meijing New Materials. At the same time, CHINT Electric (601877. SH) spin-off subsidiary Chint Aneng has not been listed so far, and as of September 30, 2024, it is still in the state of suspension of IPO review.

In addition, Sungrow (300274. SZ) has announced the listing of its spin-off subsidiary, Sunshine New Energy, and started listing counseling. However, the latter has recently become Tahoe Intelligent (603656. SH), which has sparked speculation about whether it will go public through a backdoor listing and inject assets into Tahoe Smart.

In view of the current market environment for spin-offs and listings, Wang Jiyue, a senior investment banker and former sponsor representative, said in an interview with reporters that after the new "National Nine Articles" proposed to strictly control spin-offs and listings, spin-offs and listings have become a one-matter-by-one discussion, and the uncertainty of time and results has increased. At present, it is rare for spin-offs to be approved, and buying a shell has become an option.

(Editor: Dong Shuguang Review: Wu Kezhong Proofreader: Yan Jingning).