--- title: "A 160 million yuan loan lawsuit triggers the \"credit goods chain\" crisis, Grand Sunergy Tech's controlling shareholder faces difficulties with high-level pledges" type: "News" locale: "en" url: "https://longbridge.com/en/news/292084803.md" description: "Grand Sunergy Tech's subsidiary, Anhui Grand Sunergy New Energy, has defaulted on payments, with a total litigation amount exceeding 160 million yuan. The controlling shareholder, Grand Sunergy Energy, has pledged stocks at high levels as guarantees for its subsidiary, facing the risk of liquidation. The company has incurred losses for six consecutive years since 2020, with total losses exceeding 1.2 billion yuan, and its debt-to-asset ratio has surpassed 80%, putting its operations in distress" datetime: "2026-07-08T11:09:10.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/292084803.md) - [en](https://longbridge.com/en/news/292084803.md) - [zh-HK](https://longbridge.com/zh-HK/news/292084803.md) generator: "portal-rs" --- # A 160 million yuan loan lawsuit triggers the "credit goods chain" crisis, Grand Sunergy Tech's controlling shareholder faces difficulties with high-level pledges Image source: Visual China **Blue Whale News, July 8** (Reporter Wang Xiaonan) On the evening of July 7, a court summons involving an amount as high as 115 million yuan once again dragged Grand Sunergy Tech (603778.SH) into the quagmire of litigation. Coupled with another case of overdue payment of 51.8462 million yuan in May, the total amount involved has exceeded 160 million yuan. Meanwhile, its controlling shareholder, Grand Sunergy Energy, faces the risk of "liquidation" at any time as the stock price of the listed company has fallen from its peak, with 32.1 million shares of Grand Sunergy Tech pledged as collateral for its subsidiary Anhui Grand Sunergy New Energy's "credit sale." Since 2020, Grand Sunergy Tech has reported losses for six consecutive years, with cumulative losses exceeding 1.2 billion yuan, and the company's debt-to-asset ratio has surpassed the red line of 80%. Faced with relentless pressure from suppliers, the sword of Damocles of pledged liquidation, and a continuously bleeding operational status, how many trump cards does this hollowed-out listed company still have to play? Regarding the series of lawsuits against its subsidiary for overdue payments, Blue Whale News contacted Grand Sunergy Tech, and the company stated that everything is subject to the announcement. Under the dual pressure of litigation and pledges, Grand Sunergy Tech is caught in a vortex of 160 million yuan payment disputes. On the evening of July 7, Grand Sunergy Tech announced that its secondary holding subsidiary, Anhui Grand Sunergy New Energy, was sued by Shanghai Electric Group Hengxi Photovoltaic Technology (Nantong) Co., Ltd. (hereinafter referred to as "Hengxi Photovoltaic") for overdue payments for photovoltaic modules, involving an amount of approximately 115 million yuan, with the first trial yet to be held. This is the second time Anhui Grand Sunergy New Energy has been on the defendant's seat this year due to overdue payments. Previously, on May 22, the company was sued by Jiangsu Dahang Electric Trade Co., Ltd. (hereinafter referred to as "Dahang Electric") for overdue payments for monocrystalline battery cells, involving an amount of approximately 51.8462 million yuan. The total principal and penalty involved in the two cases exceeds 160 million yuan. The cases of the two lawsuits are highly similar, both pointing to Anhui Grand Sunergy New Energy's payment default as the buyer. In the transaction with Hengxi Photovoltaic, both parties signed the "Photovoltaic Module Procurement Contract" on March 6, 2026. After Hengxi Photovoltaic delivered the goods in batches as agreed, Anhui Grand Sunergy New Energy only paid approximately 40.9586 million yuan before experiencing severe delays. Hengxi Photovoltaic then filed a lawsuit, demanding payment of all outstanding amounts and penalties. In the transaction with Dahang Electric, Anhui Grand Sunergy New Energy signed the "Solar Cell Sales Contract" on December 3, 2025, for monocrystalline battery cells valued at approximately 51.2469 million yuan. The goods were fully delivered on December 27, 2025, but Anhui Grand Sunergy New Energy failed to pay any contract price after the payment deadline expired on March 16, 2026. Dahang Electric filed a lawsuit demanding repayment of the principal and penalties totaling 51.8462 million yuan What is even more striking is the "bottom line" operation of the controlling shareholder in the two lawsuits. In both transactions, the controlling shareholder of the listed company, Grand Sunergy Tech, pledged shares of the listed company to guarantee the debts of its subsidiaries, pledging 22.1 million shares for the case involving Dahang Electric and 10 million shares for the case involving Hengxi Photovoltaic, with a total of 32.1 million shares pledged. Both plaintiffs have requested the court to confirm their right to a pledge on the pledged Grand Sunergy Tech shares and to have priority in recovering the proceeds from the discount or auction of those shares. The timing of the pledges is intriguing; at the time of the pledges, the stock price of Grand Sunergy Tech was at a historical high. Since the beginning of this year, Grand Sunergy Tech has been favored by the market due to the space photovoltaic concept and other factors, with its stock price soaring from a low of 3.23 yuan/share on September 23, 2025, to a historical high of 34.27 yuan/share on April 9, 2026, an increase of over 10 times. December 3, 2025, and April 23, 2026, are the starting dates when Grand Sunergy pledged its shares to Dahang Electric and Hengxi Photovoltaic, respectively, with the stock prices at that time being 12.64 yuan/share and 26.54 yuan/share. However, as of the close on July 8, the stock price of Grand Sunergy Tech had fluctuated down to about 10.92 yuan/share, a drop of approximately 68% from its peak earlier in the year. The shadow of litigation does not end there. On June 30, Grand Sunergy announced that the company and its wholly-owned and controlling subsidiaries had accumulated new lawsuits and arbitrations totaling 82.1462 million yuan over a 12-month period, accounting for 26.42% of the company's most recent audited net assets. Among these, there are three cases involving amounts exceeding 6 million yuan, totaling 82.0197 million yuan. Even more concerning is the delay and violation in information disclosure. On June 15, Grand Sunergy received a warning letter from the Beijing Securities Regulatory Bureau for incomplete and untimely information disclosure. When the company disclosed the "Announcement on Accumulated Litigation and Arbitration Matters" on April 24, it was already aware of the 51.8462 million yuan lawsuit involving Dahang Electric but did not include it, only making a supplementary disclosure on May 22. Chairman Wu Jun, General Manager Gao Fei, and Board Secretary Zhang Kun were subjected to administrative regulatory measures, receiving warning letters, which were recorded in the integrity archives of the securities and futures market. Yuan Shuai, Deputy Secretary-General of the Zhongguancun Internet of Things Industry Alliance, told Blue Whale News that from the general logic of judicial practice, if the plaintiffs ultimately win, the requested amount of 115 million yuan may not necessarily be fully supported. The court will comprehensively determine the validity of the contract terms, the actual performance of both parties, and whether there are any offsetting breaches. If the subsidiary's assets are exhausted and still insufficient to cover the debts, it will depend on whether the listed company has provided guarantees for those debts. Yuan Shuai believes that regarding the plaintiffs' claim for priority repayment rights on 10 million shares of Grand Sunergy Tech, the core issue is whether the pledge was legally registered. If the plaintiffs win, they will have the right to priority repayment from the proceeds of the auction or sale of those shares. For the controlling shareholder's equity, if the subsidiary's debts become overdue, the creditors exercising their pledge rights may lead to a passive dilution of the controlling shareholder's shareholding ratio. If the stock price was high at the time of the pledge, a subsequent drop in stock price triggering a margin call could result in the controlling shareholder being unable to supplement the pledged assets There is also a risk of pledged equity being forcibly liquidated, directly shaking the listing status of the controlling shareholder. Six consecutive years of losses exceeding 1.2 billion yuan, with high debt repayment pressure Behind the lawsuits and arbitration entanglements is Grand Sunergy Tech deeply mired in poor performance fundamentals. According to information, Grand Sunergy Tech's predecessor, Qianjing Landscape, was established in 2002 and listed on the Shanghai Stock Exchange at the end of 2015, becoming the first company in the domestic landscaping industry to be listed on the main board of the Shanghai Stock Exchange. However, after 2018, the landscaping business faced difficulties due to the downturn in the real estate market and high accounts receivable, leading to a decline in the company's performance. At that time, the company's founders, Hui Quanfu and Yang Jing, repeatedly sought to transfer control, ultimately transferring the controlling stake to Grand Sunergy Energy in November 2022. However, this "shell sale" itself has also buried hidden dangers for the future. As of May 2026, Grand Sunergy Energy still owes the original controlling shareholder Yang Jing 148 million yuan for the equity transfer, and even re-pledged the previously acquired shares to Yang Jing as collateral. Currently, Grand Sunergy Tech is engaged in the production and sales of heterojunction, TOPCON, and other batteries/modules; the photovoltaic power station EPC business provides a full range of services for owners, including feasibility studies, program design, material procurement, equipment installation, engineering construction, and operation and maintenance. By 2025, the revenue from the photovoltaic business accounted for over 90% of the company's total revenue. However, since 2020, this cross-border photovoltaic company has been losing money for six consecutive years, with cumulative losses exceeding 1.2 billion yuan. Behind this are multiple factors, including the shrinkage of the landscaping main business, missteps in the cross-border photovoltaic technology route, and industry overcapacity. Clearly, the cross-border venture has not brought new life but instead dragged the company into a deeper pit of losses. In 2025, Grand Sunergy Tech achieved total operating revenue of 796 million yuan, a significant year-on-year decrease of 61.97%; the net profit attributable to the parent company was a loss of 573 million yuan, while the loss in the same period last year was only 106 million yuan, with the loss amount expanding more than fourfold year-on-year. Grand Sunergy Tech explained that in 2025, the photovoltaic industry faced structural overcapacity and prominent supply-demand contradictions, with module prices remaining low for an extended period. Additionally, the provision for large impairment losses also consumed substantial profits, with Grand Sunergy Tech making a total impairment provision of approximately 350 million yuan in 2025. As a result, Grand Sunergy Tech's revenue from photovoltaic modules and batteries was only 784 million yuan, a year-on-year decrease of 58.89%; while reduced orders led to insufficient capacity utilization and high fixed costs, combined with falling module prices, Grand Sunergy Tech's overall gross margin fell to -21.9%, a year-on-year decrease of 21.98 percentage points. In the first quarter of 2026, the downward trend showed no signs of reversal, with Grand Sunergy Tech achieving operating revenue of 120 million yuan, and the net profit attributable to the parent company still showing a loss of 34.8352 million yuan. Debt repayment pressure also remains high. In 2025, Grand Sunergy Tech's asset-liability ratio climbed to 80.17%, which is not only higher than the 67.01% in the same period last year, but the company's monetary funds were only about 142 million yuan, while short-term loans amounted to 207 million yuan and long-term loans to 155 million yuan. By the end of the first quarter of 2026, Grand Sunergy Tech's asset-liability ratio further rose to 80.98%, with the company's monetary funds shrinking to 7.5 million yuan, and short-term loans reaching 207 million yuan, raising concerns about short-term debt repayment capability It is worth noting that the debt crisis at the level of the controlling shareholder has further exacerbated the situation. As of June 3, the number of pledged shares by Grand Sunergy Tech's controlling shareholder, Grand Sunergy, has reached 99.63% of its shareholding ratio, with 80,795,827 shares maturing in the next six months, accounting for 74.61% of its total shareholding. In addition, on June 22, Grand Sunergy Tech announced that a dispute had arisen between its controlling shareholder, Grand Sunergy, and the original shareholder, Yang Jing, regarding the transfer of shares. After negotiation, both parties reached a settlement, and Grand Sunergy is required to pay the outstanding share transfer payment of 148 million yuan and related penalties totaling 213 million yuan by June 26. If the payment is not made on time, the 26 million pledged shares of the company will be subject to judicial disposal. However, on June 26, Grand Sunergy Tech disclosed again that Grand Sunergy had not paid the share transfer payment and penalties as stated in the ruling. If the case proceeds to compulsory enforcement, the corresponding company stocks held may face the risk of judicial disposal. Grand Sunergy Tech stated to Blue Whale News that there had been no payment at the time of the announcement, and no new developments had been received since then. The company's performance has been poor and has been continuously losing money over the years. Yuan Shuai believes that the continuous occurrence of large overdue payments being litigated is a typical signal of insufficient liquidity, usually indicating that the company's cash flow has encountered significant blockages. The ongoing poor performance is related both to the cyclical fluctuations of the entire photovoltaic industry and to Grand Sunergy Tech's own business layout and cost control capabilities, compounded by high debt interest expenses and litigation-related losses, further dragging down performance. With lawsuits, continuous losses, high debt, and plummeting stock prices, Grand Sunergy Tech is facing a complex web of intertwined difficulties. The method of the controlling shareholder using high-level pledged stocks as collateral for "credit sales" to subsidiaries has become a sword of Damocles hanging over the company after the stock price plummeted. 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