--- title: "Recently, NARADA has been struggling, but it actually holds two cards for a comeback" type: "News" locale: "en" url: "https://longbridge.com/en/news/285663818.md" description: "Nandu Power is facing a debt crisis of 550 million, with 65 bank accounts frozen and the chairman's shares judicially frozen. However, the company still has 8.9 billion in orders and positive cash flow, which may lead to a turnaround. Despite poor market expectations, Nandu Power's main business is still striving upward, with a strategic focus on lithium battery storage and semi-solid battery fields" datetime: "2026-05-08T04:29:24.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285663818.md) - [en](https://longbridge.com/en/news/285663818.md) - [zh-HK](https://longbridge.com/zh-HK/news/285663818.md) --- # Recently, NARADA has been struggling, but it actually holds two cards for a comeback On May 6, 2026, ST NARADA released an announcement that shook the market: a total of 552 million yuan in debt was overdue, 65 bank accounts were frozen, and all shares held by Chairman Zhu Baoyi were judicially frozen. In the past year, the company has been a defendant 140 times, with 98.6% of the involved amount concentrated on the defendants, totaling 886 million yuan. Recently, NARADA Power has indeed faced a dire situation. However, if we remove the panic, it actually still holds two cards for a comeback. According to insights from Yujian Energy, the company turned its operating cash flow net amount positive in the first quarter, with 8.9 billion yuan in hand orders; its strategic focus is on the AIDC lithium battery energy storage and semi-solid battery sectors, which are still heating up. Although the market has given a poor outlook, its main business is still struggling upwards, and the direction has not deviated. A liquidity crisis has pushed a company that still has goods to sell into a corner, and this situation itself hides the biggest expectation gap. ## **There is often only a thin line between danger and opportunity** Before focusing on the current problems faced by NARADA Power, many people overlooked a piece of information: in the first quarter of 2026, NARADA Power's net cash flow from operating activities turned positive, recording 106 million yuan. The main business is still generating positive cash flow—this is an indispensable part of all turnaround stories. From a horizontal industry perspective, it is not uncommon for companies to collapse just before dawn. In 2019, the parent company of Suntech Power, Shunfeng Photovoltaic, fell into bankruptcy restructuring due to the decline in photovoltaic subsidies, while the photovoltaic industry was on the eve of grid parity, which saw explosive growth the following year. In 2019, Huirun Photovoltaic was delisted from the main board, but during the same period, the newly installed capacity of photovoltaics surged by 148% year-on-year. The energy storage industry is currently experiencing a similar period of growing pains: data from the Zhongguancun Energy Storage Industry Technology Alliance shows that the average price of a 2-hour energy storage system in 2025 was 553.94 yuan/kWh, a year-on-year decrease of 14.41%; the average price of a 4-hour system was 478.69 yuan/kWh, a decrease of 26.07%. The price drop combined with the capacity clearing period is accelerating the differentiation between leading and marginal enterprises. Whether NARADA Power has been classified as "marginal" depends on two things: orders and routes. ## **With 8.9 billion yuan in orders, just one last push needed** The most valuable asset of NARADA Power at present is its approximately 8.9 billion yuan in hand orders and about 7.8 GWh of energy storage project reserves. Having orders on hand means that if they cannot be delivered, they are just waste paper. The crux of the problem is that among the 65 frozen accounts are basic and general accounts, which means salaries cannot be paid, and payments for goods cannot be made, leading to a disruption in the supply chain. The company’s announcement acknowledged that the account freeze "has caused serious impacts on capital operations and management." However, the other side of this dilemma is that as long as the funding channel can be opened up, these orders can start rolling again. In reality, there are precedents. In 2023, Guoxuan High-Tech overcame difficulties in promoting its German factory and other expansion projects through syndicated loans and strategic investor injections; in 2022, Huayou Cobalt faced liquidity tightness due to capacity expansion and completed core capital replenishment through 7.6 billion yuan in convertible bonds and other capital operations, ultimately weathering the storm Yujian Energy believes that the most feasible approach for Nandu Power at present is to carry out specialized supply chain financing around the existing orders. The orders are genuine, the customers are clear, and the repayment paths are traceable—these are the standard requirements for banks to conduct order financing and factoring business. Even leveraging 20% of the 8.9 billion yuan in existing orders can activate nearly 1.8 billion yuan in production cycles. The company's operating cash flow has remained positive over the past three years, with revenue exceeding 7.4 billion yuan in 2025, indicating that the main business's ability to generate cash has not completely disappeared. ## **AIDC and Semi-Solid State,** **The Transformation Direction is Not Wrong** Nandu Power's current strategic focus is on AIDC lithium battery energy storage and semi-solid state batteries. This direction is inherently promising. AIDC, or Artificial Intelligence Data Center, is a high-value scenario for energy storage applications. The global AI computing power construction is experiencing an explosive period—NVIDIA's data center revenue reached 39.1 billion dollars in the first quarter of fiscal year 2026, a year-on-year increase of 73%. The power density of AI data centers is extremely high, and energy storage systems serve both as backup power sources and for peak-valley arbitrage, making it an incremental market that leading battery companies are competing for. The semi-solid state battery route is also viewed positively by the industry. CATL's Kirin condensed state battery, launched in April 2026, applies aviation-grade condensed state technology to passenger vehicles for the first time, achieving an energy density of 350Wh/kg, setting a new mass production record; Nio's semi-solid state battery pack has been in operation for over two years. Nandu Power is not entering this field empty-handed; it has technological accumulation and production line foundations. In other words, Nandu Power's strategic direction is not wrong. Its issue is not "what to do," but "whether it can survive until it is produced." The clarity of technology and market direction has a direct impact on the decision-making logic of creditors and potential investors—it is worth saving. ## **Owing 550 Million,** **Not 5 Billion** Looking at the debt scale, the overdue debt of 552 million yuan accounts for 39% of the company's net assets in 2025, triggering multiple cross-default clauses, with the trigger point being loan withdrawal, not insolvency. Key data shows that although Nandu Power's asset-liability ratio will reach 92.14% by the end of 2025, the total assets on the books still amount to about 14.9 billion yuan, with inventory and accounts receivable exceeding 6 billion yuan combined. The essence of the current financial predicament is liquidity, not a complete loss of debt repayment ability. The annual loss of 2.6 billion yuan largely stems from asset impairment, goodwill impairment, and other non-cash items—what is lost is on the books, not in cash flow. Compared to extreme cases in the industry, the differences are significant. For example, Huayi Electric, which previously entered bankruptcy liquidation, had a debt ratio exceeding 140% and was insolvent. ST Quanwei, which is currently undergoing reorganization, is projected to have annual revenue of less than 63 million yuan in 2025, with net assets likely turning negative. In contrast, Nandu Power still had nearly 1 billion yuan in revenue in the first quarter, and its main business is still operational, which determines that its probability of moving towards reorganization-style bankruptcy is much lower than that of reorganization-style restructuring. The company's announcement states that it is "continuously negotiating with creditors to reach an agreement on a debt solution as soon as possible," and explicitly mentions "actively connecting with upstream and downstream supply chains, industrial strategic investors, and other resources." Such wording is not uncommon in the announcements of listed companies during financial crises, but for a company that still has 8.9 billion in orders on hand and positive operating cash flow in the first quarter, it is not empty talk. Vision Energy believes that the real issue now is that the stock price has plummeted continuously, and the shadow of "delisting at par value" is beginning to emerge—this is a more urgent pressure than debt defaults. The continuous freezing of bank accounts will gradually erode delivery capabilities, which is a more pressing concern than litigation. The chairman's entire shareholding is frozen, and the controlling shareholder's pledges are nearly exhausted, shaking the stability of control. However, these three sources of pressure essentially point to the same solution: if special financing can be secured to restore production, cash flow can be stabilized; with stabilized cash flow, stock price expectations can be maintained; with stable expectations, refinancing and attracting strategic investors can have a basis for negotiation. This is a positive cycle, starting with getting the first few projects from that 8.9 billion order moving. As of May 6, the company has been sued 140 times in total, with 98.6% of the amount involved concentrated on the defendants. However, most of these lawsuits revolve around debt disputes; resolving the debts will reduce the litigation. It is not being shorted, not a result of fraud, and not under investigation by the Securities Regulatory Commission—it is simply experiencing a rapid liquidity crisis. Its fate is being determined by the game between creditors, financial institutions, and potential strategic investors. This established battery company is still worth saving—because it has things that can still be sold in the market. 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