Fengfan Co., Ltd. Plans to Divest 60% Equity Stake in Jingying Optoelectronics

Securities Times Reporter Ye Lingzhen

After nearly three years in the photovoltaic sector, Fengfan Co., Ltd. (601700) plans to divest its stake in Suzhou Jingying Photovoltaic Technology Co., Ltd. (hereinafter referred to as “Jingying Photovoltaic”).

On the evening of March 24, Fengfan Co. announced that it intends to pre-list on the Jiangsu Property Rights Exchange to transfer 60% of its shares in Jingying Photovoltaic. This pre-listing is only for information disclosure and to seek potential buyers; it does not constitute a transaction. After completing internal review procedures and obtaining approval from relevant authorities, a formal listing will be made. The transaction counterparty, price, and payment method have not yet been determined.

The equity structure shows that Fengfan holds a 60% stake in Jingying Photovoltaic. If this transfer is completed, Fengfan will fully divest from Jingying Photovoltaic. The company stated that this transfer aims to focus on its core business, enhance its core competitiveness, and ensure the preservation and appreciation of state-owned assets.

Securities Times·e Company reporter noted that Fengfan’s main business previously involved power transmission towers and steel structures. In 2023, it acquired a 60% stake in Jingying Photovoltaic for 960 million yuan, expanding into silicon wafers, solar cells, and other photovoltaic manufacturing sectors.

However, after the acquisition, the overall photovoltaic industry faced a phase of overcapacity. Jingying Photovoltaic’s performance fell short of expectations, failing to meet performance commitments in 2023 and 2024. In 2024, revenue was 736 million yuan, with a net loss of 390 million yuan. In the first three quarters of 2025, the company’s net profit was -96.6376 million yuan, remaining in loss.

The losses in the photovoltaic sector have dragged down the overall performance of the listed company. According to earnings forecasts, Fengfan expects a net profit of between -380 million yuan and -320 million yuan in 2025, turning from profit to loss year-on-year. The company explained that the decline is due to overcapacity and falling prices in the photovoltaic industry, and it anticipates an impairment of approximately 339 million yuan in goodwill for the full year.

In fact, the market has already anticipated Fengfan’s adjustment of its photovoltaic business. During the earnings presentation on December 2, 2025, an investor asked whether the company plans to shrink or restructure its photovoltaic operations. The company responded that it would consider appropriate integration to reduce the negative impact of industry downturns on its performance and expressed its intention to actively respond to policies aimed at curbing internal competition (“anti-involution”) in the photovoltaic sector, and to adjust its operational strategies accordingly.

In January this year, Fengfan announced a capital reduction of 40 million yuan in its subsidiary, Yueyang Jingying Photovoltaic Technology Co., Ltd. (hereinafter “Yueyang Jingying”). The company stated that due to overcapacity in the photovoltaic industry and Yueyang Jingying’s lack of major investment plans in the short term, its operational capital needs would decrease. The reduction aims to activate surplus cash and improve capital efficiency.

In March, Jingying Photovoltaic’s General Manager and former shareholder, Huang Jinqiang, resigned from his positions as director and deputy general manager of the listed company.

Although the transition into the photovoltaic sector has faced difficulties, Fengfan’s transformation appears to be ongoing. On January 26, 2026, the company announced plans to acquire a 51% stake in Yanling Jiaye, a company specializing in explosion-proof automation equipment and heavy-duty machinery, using approximately 383 million yuan of self-raised and internal funds, entering the explosion-proof automation field.

Following the announcement, the stock exchange promptly issued an inquiry letter requesting the company to supplement disclosures regarding the transaction purpose, performance commitments of the target company, and financial status. However, due to incomplete implementation conditions, the transaction has currently been terminated.