According to Official Account @PV-2005, on the evening of February 25, leading PV equipment manufacturers Autowell and S.C New Energy announced their respective external investment plans.
Autowell and S.C New Energy Agree to Debt-to-Equity Swap
Autowell stated that, after negotiations, as of the debt reference date of December 31, 2024, its subsidiary agreed to transfer part of its receivables from Runyang Co., Ltd. and its subsidiaries to Autowell, which in turn agreed to accept the debt. Meanwhile, Runyang’s subsidiary transferred the corresponding liability to Runyang Co., Ltd., which agreed to assume and settle the debt.
Autowell plans to inject RMB 180 million of this debt into the target company as additional capital. Upon completion, Autowell will hold 10,125,000 shares of the target company, accounting for 2.0225% of its total equity.
S.C New Energy also announced that, through negotiations, its subsidiary Changzhou Jiejia Chuang agreed to transfer a RMB 142 million receivable from Runyang’s subsidiary to S.C New Energy. Meanwhile, Runyang’s subsidiary transferred RMB 720 million in liabilities owed to Changzhou Jiejia Chuang and S.C New Energy to Runyang Co., Ltd., which agreed to assume and repay the debt. Upon confirmation by all parties, Runyang Co., Ltd. will fulfill a total payment obligation of RMB 720 million to S.C New Energy.
S.C New Energy plans to convert this RMB 720 million debt into equity in Runyang Co., Ltd. Upon completion, S.C New Energy will hold 40,500,000 shares, representing 8.0899% of Runyang’s post-conversion total equity.
Runyang’s Valuation Changes
In 2023, according to Runyang Co., Ltd.’s IPO prospectus, its fundraising target was RMB 4 billion, implying a maximum IPO valuation of RMB 40 billion.
By August 2024, Tongwei Co., Ltd. decided to invest RMB 5 billion to acquire no less than 51% of Runyang’s equity, which implied a valuation of RMB 9.8 billion.
With Autowell and S.C New Energy now conducting a combined RMB 900 million debt-to-equity swap for a 10.11% stake in Runyang, the company’s valuation stands at approximately RMB 8.9 billion.
Debt-to-Equity Swap and RMB 1 Billion State-Owned Capital Injection: Two Major Boosts for Runyang
On August 14, 2024, Tongwei announced its plan to acquire Runyang for RMB 5 billion, contingent upon a RMB 1 billion cash injection from Jiangsu Yueda Group, a subsidiary of the Yancheng State-owned Assets Supervision and Administration Commission.
In September 2024, Yueda Group invested RMB 1 billion into Runyang, providing much-needed support for the struggling company. By October, Runyang’s 13GW high-efficiency N-type solar cell plant in Qujing, Yunnan resumed production. In December, its 16GW N-type solar cell plant in Jianhu also resumed operations. Additionally, Runyang’s U.S. manufacturing facility commenced production.
Although Tongwei ultimately terminated its acquisition of Runyang, the company’s situation has significantly improved with state-owned capital backing. Now, with Autowell and S.C New Energy both participating in a debt-to-equity swap, Runyang’s financial and debt pressures have eased considerably, marking a positive development for the company.
Source：https://mp.weixin.qq.com/s/rI__ez0Q0l7O_rhU7IYiYQ