A large amount of capital has entered the photovoltaic industry
Jun 10,2023 | Daxtromn power
In an interview with the media, Zhang Yong, chairman of AISWEI, said, "Our 'dark horse' is not a new horse, but an 'old horse' with a lot of accumulation."
After inheriting the Chinese business of SMA Group, the originator of photovoltaic inverters, AISWEI, which has been operating independently for three years, is expanding its market share and accelerating its entry into the capital market.
Recently, the company's new round of shareholding changes has aroused the attention of the industry. A person familiar with the matter also told the 21st Century Business Herald reporter that its IPO process is expected to be accelerated.
Indeed, in the current market conditions, photovoltaic inverter companies are becoming the darling of capital. AISWEI introduced a new round of strategic investment to lay the foundation for going to the securities market; Growatt, Shouhang Xinneng, and Sanjing have submitted prospectuses, and the investment institutions behind them are waiting for "fruit picking"; Sungrow Power (300274.SZ) , Jinlang Technology (300763.SZ), Hemai (688032.SH), and GoodWe (688390.SH) are extremely active in the A-share market, and their stock prices have risen sharply recently.
Today, inverter companies, whose cost accounts for less than 5% of the photovoltaic system, contribute 20% of the number of listed companies in the A-share photovoltaic sector.
Inverter "Old Horse" completed a new round of equity financing
According to the financing information released by Qixinbao, AISWEI Technology (Shanghai) Co., Ltd. has recently undergone equity changes, and several new investors have been added—Shanghai State-owned and State-owned Enterprise Comprehensive Reform Pilot Private Equity Fund Partnership (Limited Partnership), Gongqingcheng Yunshang Yunjie Investment Partnership (Limited Partnership), Gongqingcheng Rongxing New Energy Industry Investment Partnership (Limited Partnership), Taicang Kaihui Growth No. 2 Investment Fund Partnership (Limited Partnership), Shanghai Excel Enterprise Management Consulting Partnership Enterprise (Limited Partnership), Shanghai Zhuoyu Enterprise Management Consulting Partnership (Limited Partnership), Nanjing Skyworth Photovoltaic Technology Co., Ltd., Tianjin Skyworth Haihe Emerging Industry Investment Partnership (Limited Partnership), Tianjin Jingrong Information Consulting Partnership (Limited Partnership) , Ningbo Meishan Free Trade Port Zone Degu Hongdao Venture Capital Partnership (Limited Partnership), Pu Yaofeng, Fujian Qianshui Equity Investment Partnership (Limited Partnership), Yuan Chongwei.
After penetrating through equity, except for some equity funds and natural person investments related to AISWEI’s senior management team, Shanghai State-owned Assets and State-owned Enterprise Comprehensive Reform Pilot Private Equity Fund Partnership (Limited Partnership) with a state-owned background, Nanjing Skyworth Photovoltaic Technology Co., Ltd. under Skyworth Group Co., Ltd., Tianjin Skyworth Haihe Emerging Industry Investment Partnership (Limited Partnership), Tianjin Jingrong Information Consulting Partnership (Limited Partnership), Gongqingcheng Yunshang Yunjie Investment Partnership (Limited Partnership) under Shanghai Yindu Industrial (Group) ), Gongqingcheng Rongxing New Energy Industry Investment Partnership (Limited Partnership), and Taicang Cathay Growth No. 2 Investment Fund Partnership (Limited Partnership), which has the shadow of Cathay Fund, have attracted much attention from the outside world.
After the new round of financing, the registered capital of AISWEI Technology (Shanghai) Co., Ltd. increased from 100 million yuan to about 109 million yuan. Among them, Zhang Yong, chairman of the company, is still the actual controller, with a direct and indirect shareholding ratio of 76.23%.
In this round of investment, the shares of Skyworth Group's companies and investment funds are quite eye-catching.
In January 2020, Skyworth Group, a leading home appliance company, established Shenzhen Skyworth Photovoltaic Technology Co., Ltd., opening up a new energy landscape. After more than a year of development, the new energy business has become an independent and profitable segment of Skyworth Group. In the group's 2021 annual report, its new energy business achieved revenue of 4.101 billion yuan, accounting for 8.05% of the group's total revenue.
The logic of Skyworth Group’s investment in AISWEI is not difficult to understand. In terms of products, Skyworth's photovoltaic business is based on household distributed photovoltaic business, and seeks opportunities for industrial and commercial photovoltaic power plants. Therefore, taking a stake in an inverter company can also form synergy in the industrial chain.
In fact, the new round of equity financing will open up the imagination space for AISWEI to go public.
Behind this, in the face of increasingly fierce competition, AISWEI does need capital support to further expand production capacity and market share.
A reporter from the 21st Century Business Herald noticed that in March this year, the foundation stone laying ceremony for the AISWEI Green Smart Power Park Project was held in Yangzhong, Jiangsu. According to reports, the project covers an area of 16,000 square meters, with a new plant area of 38,000 square meters. Eight full-set automated production lines and testing and aging equipment have started construction. After the project is completed and put into operation in 2023, the annual production capacity of photovoltaic inverters in AISWEI's Yangzhong production base will jump to 25GW.
The capital feast of photovoltaic inverters is being staged
If the stock price rise and fall in the past 60 trading days is used as a reference, the performance of A-share photovoltaic inverter companies is relatively outstanding.
For example, the stock prices of three inverter companies, GoodWe, Kstar (002518.SZ), and Shangneng Electric (300827.SZ), have risen among the top five, with increases of 156.90%, 134.30%, and 117.99%, respectively. In addition, the stock prices of Hemai, Jinlong Technology, and Sungrow have increased by 90.09%, 79.42%, and 78.65% in the past 60 trading days, respectively, which also greatly outperformed the market of the entire photovoltaic sector.
It is worth mentioning that as the concept of photovoltaic inverters has been hyped by the capital market, the market value of some companies has hit a record high.
Among them, the total market value of Jinlong Technology once exceeded 93 billion yuan, approaching the 100 billion market value mark. As a result, another myth of creating wealth is being staged.
"The development of household photovoltaic storage in Europe is accelerating, and the demand for household photovoltaic inverters and household energy storage inverters has increased significantly. The installed capacity of the domestic distributed photovoltaic market has continued to grow, and the proportion of installed capacity has increased significantly, further increasing the demand for households. Demand for photovoltaic inverters." A new energy industry analyst told the 21st Century Business Herald reporter that the growing domestic and foreign market demand is one of the reasons driving the current round of speculation about the concept of photovoltaic inverters.
A reporter from the 21st Century Business Herald noticed that in the first half of this year, some photovoltaic inverter companies had their mid-term results previewed. For example, Jinlang Technology expects to achieve a net profit of 390 million to 410 million yuan in the first half of this year, a year-on-year increase of 64% to 72%.
However, it is precisely in the window period when the industry and capital are both soaring, and photovoltaic inverter companies have accelerated the pace of IPO. In June this year, Sofar New Energy and Growatt submitted prospectuses to the Shenzhen Stock Exchange and the Hong Kong Stock Exchange respectively. In early July, Sanjing also submitted a prospectus to the stock exchange.
When the photovoltaic inverter company set off a wave of listing, the capital behind it was "just about to move", waiting for harvest.
In Gurui Watt’s shareholding structure, the well-known investment institution IDG Capital invested 900 million yuan, holding 3.62% and 2.90% of the shares through Bateson Group and Best Select Ventures respectively. Based on this estimate, Gurui Watt’s post-investment valuation is 13.8 billion yuan. It is worth noting that IDG Capital injected Guruwatt on June 6 this year, while the latter submitted its prospectus on June 24.
In the equity structure of Shouhang New Energy, the Ningde era appeared. In 2021, Aspiration Investment, a subsidiary of Ningde Times, will increase capital to Shouhang New Energy, holding 3% of the shares. Ningde Times, as the supplier of Shouhang's new energy materials, has also bound this inverter manufacturer through investment. In addition, a group of shareholders with a state-owned background stood behind Sofar New Energy, including Shenzhen Venture Capital, Hongtu Ventures, Hongtu No. 1, Huajin Lingyi, etc.
Compared with the investors of Growatt and Shouhang New Energy, the shareholders of Sanjing are relatively bleak. However, Liby Group appeared in the background of shareholders of Guangzhou Haihui Fortune Venture Capital Enterprise (Limited Partnership), which holds 15.87% of the company's shares.
After the equity penetration, Tianjin Baokai Investment Partnership (Limited Partnership) (hereinafter referred to as Tianjin Baokai Investment) holds approximately 12.93% of the institution's shares. The main partners of Tianjin Baokai Investment are Chen Kaixuan, Chen Kaichen and Chen Zebin. Among them, Chen Kaixuan and Chen Kaichen are the chairman, president and director of Liby Group respectively.