Jinlang Technology plans to transfer equity in four companies for a total consideration of 29.059 million yuan. On the evening of March 14, Jinlang Technology (300763) announced that its wholly-owned subsidiary, Jinlang Wisdom, intends to transfer its holdings in three wholly-owned project subsidiaries to Xiamen Guomao New Energy and Xiamen Lugong, with a total equity transfer value of 27.744 million yuan. Additionally, Jinlang Wisdom and Zhejiang Haisu plan to transfer their holding in one wholly-owned project subsidiary to Jing Energy Shen for 1.315 million yuan.
Jinlang Technology stated that this move aims to promote the rolling development of power station projects, further optimize the company’s asset structure, accelerate asset turnover efficiency, and advance its new energy industry development plans.
According to the announcement, the four subsidiaries involved in the transfer are Anxi Xincheng United New Energy Co., Ltd. (referred to as “Anxi Xincheng”), Fuzhou Jinneng New Energy Co., Ltd. (referred to as “Fuzhou Jinneng”), Fuzhou Yunxi New Energy Co., Ltd. (referred to as “Fuzhou Yunxi”), and Jiangmen Juyi New Energy Technology Co., Ltd. (referred to as “Jiangmen Juyi”). The total consideration for the two transactions amounts to 29.059 million yuan, which involves photovoltaic power stations with a combined installed capacity of approximately 10.18 MW.
Jinlang Technology emphasized that the transaction is in response to the buyer’s request for a bundled acquisition, as the target companies are part of the distributed photovoltaic power station construction projects funded by convertible bonds issued in 2022. Consequently, this transaction will involve the external transfer of some photovoltaic power stations from the convertible bond project.
Since its establishment in 2019, Jinlang Wisdom has been engaged in new energy power production and household photovoltaic generation systems, focusing on the development, construction, and operation of solar photovoltaic power stations. This venture serves as a crucial supplement to the company’s photovoltaic inverter business, facilitating diversification and extending the industrial chain.
Investing in photovoltaic power stations is characterized as a capital-intensive industry with significant fixed asset investments. Therefore, during the development, construction, and operation of solar photovoltaic power stations, the company adopts a rolling development business strategy. This allows the company to achieve stable income from power generation while retaining operational photovoltaic power stations, as well as the opportunity to sell them to recover funds, control the overall scale of photovoltaic power station assets, enhance capital efficiency, optimize asset structure and operational efficiency, and reduce financial risks.
Jinlang Technology stated that this transfer of the target companies is a concrete implementation of the aforementioned business development strategy. Through this transaction, the company significantly reduces the investment realization cycle, strengthens working capital, accelerates asset turnover efficiency, optimizes asset structure, and ultimately enhances its risk resistance and competitive capability.
The transaction is not expected to harm the interests of the company or other shareholders and will not have a significant adverse impact on the company’s future financial condition or operating results. It aligns with the overall development strategy of the company and the interests of all shareholders. Following the completion of the transaction, Anxi Xincheng, Fuzhou Jinneng, Fuzhou Yunxi, and Jiangmen Juyi will no longer be included in the consolidated financial statements of Jinlang Technology.
The announcement indicated that preliminary calculations estimate the transaction will generate a pre-tax profit of approximately 4.9511 million yuan (subject to audit results). This transaction does not involve personnel placement, land leasing, debt restructuring, or similar situations, and it will not result in related transactions or competition within the same industry.
Notably, Jinlang Technology has been accelerating its layout in the new energy industry. In February of this year, the company disclosed a proposal for the issuance of convertible corporate bonds to unspecified targets for the year 2025, planning to raise no more than 1.694 billion yuan. After deducting issuance costs, the net proceeds will be invested in distributed photovoltaic power station projects, new high-voltage high-power grid-connected inverter projects, new medium and large power hybrid energy storage inverter projects, construction projects for the Shanghai R&D center, digital enhancement projects, and working capital replenishment.
