0 1 The stock price has been halved, yet major shareholders still flee

How pessimistic must one be about the industry to choose to reduce holdings and cash out at this time?

Unlike photovoltaic raw material companies that are doing their utmost to repurchase shares and maintain investor confidence, photovoltaic equipment sellers seem to care little about the stock price—despite the stock price being halved, they still resolutely reduce their holdings in their own companies.

The cold spring river water reveals the truth to the ducks. These ducks may not be optimistic about this round of capacity reduction and anti-involution.

The different attitudes of raw material and equipment companies may be related to their business models. Photovoltaic raw materials operate on a heavy asset model, making it difficult to exit once they are on the table; whereas photovoltaic equipment companies generally follow a light asset model, flying together during the boom and getting off whenever they choose at the bottom.

Moreover, it is said that relevant authorities have stopped the filing of new photovoltaic projects. But can the calculations really be made this way? Can photovoltaic equipment companies truly exit unscathed?

On July 5, Autowell announced: Ge Zhiyong (holding 27.03%), Li Wen (holding 17.70%), Aochuang Investment (holding 4.20%), and Aoli Investment (holding 2.07%) plan to collectively transfer 15,750,000 shares, accounting for 4.99% of the total share capital, with the reason for transfer being their own funding needs. The transferors are the actual controllers of the company (Ge Zhiyong, Li Wen) and their concerted actors. This 4.99% is just below 5%, quite clever. The transferee is a shareholder below 5%, so they can sell off at will without announcement.

July 5 was a Friday, and just after a weekend, the inquiry had already concluded.

Autowell announced: Based on the inquiry subscription situation on July 7, 2025, the preliminary transfer price is set at 28.35 yuan/share; a total of 19 institutional investors participated in the bidding, including fund management companies, qualified foreign institutional investors, private fund managers, and securities companies.

These institutions reacted quite quickly; if they hadn’t worked overtime over the weekend, they might have missed the bidding. The efficiency is so high mainly because of the support from the brokerage firms. The brokerage firm is none other than CITIC Securities, which has been mentioned multiple times before in relation to the carbon trading market. The first high-priced stock issued in the two markets, Hemai Co., was its masterpiece.

With the backing of the leading brokerage firm, the institutions reacted so swiftly. Are they genuinely optimistic about this photovoltaic equipment company, or is there something else going on?

At a price of 28.35 yuan/share, the actual controllers and concerted actors cashed out a total of 446 million yuan, with controlling shareholders Ge Zhiyong and Li Wen cashing out 213 million yuan and 179 million yuan respectively. In absolute terms, 446 million yuan is not a large amount; 28.35 yuan is also the halved price of Autowell.

On August 23, 2022, Autowell had previously set a historical high of 132.18 yuan (adjusted price). At 28.35 yuan, it has dropped 79% from the historical high.

So, why do the controlling shareholders insist on reducing their stock holdings at such a low price now? And why do they want to reduce as much as possible while avoiding the sensitive point of 5%? It is worth mentioning that in 2023, the actual controllers and executives also increased their holdings of the company's stock. An announcement in July 2023 showed that Chairman and General Manager Ge Zhiyong, Director, Vice General Manager, and core technical personnel Li Wen, and Director and Board Secretary Zhou Yongxiu cumulatively increased their holdings of 314,216 shares of the company through centralized bidding, accounting for 0.20% of the company's total share capital, with a total increase amount of RMB 60.7775 million (including transaction fees).

From the results, this increase in holdings has resulted in a loss.

The company stated that this reduction in holdings was due to the shareholders' need for funds. However, under normal circumstances, the market tends to interpret such situations as a lack of confidence from the founders and actual controllers in the company.

Let’s take a look at what Autowell is currently experiencing!

First, poor performance. In the first quarter of this year, total operating revenue was RMB 1.534 billion, a year-on-year decrease of 21.90%; net profit attributable to the parent company was RMB 141 million, a year-on-year decrease of 57.56%; and net profit excluding non-recurring gains and losses was RMB 124 million, a year-on-year decrease of 63.40%.

Second, high risks of accounts receivable and inventory. This can be referenced in the previous article “The Struggles and Difficulties of Photovoltaic Equipment Are Reflected in Autowell!”. Currently, photovoltaic companies are facing tough times, and it is common for downstream customers not to take delivery, not to accept goods, and not to make payments (due to lack of funds). Events such as defaults or being forced to become shareholders of Runyang could happen at any time. Previously, Runyang's RMB 180 million accounts receivable could not be collected, forcing Autowell to convert debt into equity. Anyway, with Yueda providing a safety net, just wait for this company that should have been cleared to go public in the future.

Third, order risks.

The company's annual report states: In 2024, Autowell signed sales orders worth RMB 10.149 billion (including tax), a decrease of 22.49% compared to 2023; as of December 31, 2024, the company had orders on hand worth RMB 11.831 billion (including tax), a decrease of 10.40% compared to 2023.

However, a harsh reality that must be faced now is that the photovoltaic industry is experiencing internal competition, and photovoltaic companies have almost no new production capacity. Construction projects are showing widespread slowdowns and halts. In 2024, 85% of Autowell's revenue comes from photovoltaics. If no one is buying shovels, how can they sell?

So, how many of Autowell's photovoltaic equipment orders will actually be executed? How many new orders will there be in 2025?

Without orders, it is difficult to have revenue; without revenue, it is hard to have performance; without performance, how can there be a future?

The spring river water is "cold," and perhaps no one understands the water temperature better than equipment companies like Autowell

0 2 Major Shareholders of Equipment Companies Are Fleeing en Masse

Autowell has been listed for many years and has hardly reduced its holdings; on the contrary, it has even increased its shares. It is understandable for the controlling shareholder to reduce holdings and cash out in the current unfavorable environment.

In contrast, companies like Gaoce Co., Ltd. and Jiejia Weichuang seem to be more anxious.

On April 4 of this year, Gaoce Co., Ltd. announced that its controlling shareholder and actual controller Zhang Xu plans to transfer a total of 27,308,000 shares, accounting for 4.99% of Gaoce Co., Ltd.'s total share capital.

Again, the familiar 4.99%! It seems Gaoce is following the example set by Autowell! They were originally in the same group.

On May 12 of this year, Jiejia Weichuang announced that one of its controlling shareholders, actual controllers, directors, and general manager Yu Zhong, along with Hengchuang Huiye, Hongxing Yuanye, and Dingjia Huiye, would reduce their holdings.

Among them, Yu Zhong plans to reduce his holdings by no more than 1,800,000 shares, accounting for 0.52% of the company's total share capital; the concerted actors (Hengchuang Huiye, Hongxing Yuanye, Dingjia Huiye) plan to reduce their holdings by no more than 700,000 shares, accounting for 0.20% of the company's total share capital. This is Yu Zhong's first reduction.

I wonder if Yu Zhong regrets reducing so little. Just four days later, on May 16, Jiejia Weichuang announced again: Yu Zhong plans to reduce his holdings by no more than 1,734,000 shares (accounting for 0.50% of the company's total share capital) through block trading within three months after 15 trading days from the date of this announcement.

Additionally, one of Jiejia Weichuang's controlling shareholders, actual controllers, and directors, Liang Meizhen's concerted actor Jiang Zeyu, plans to reduce his holdings by no more than 968,000 shares (accounting for 0.28% of the company's total share capital) through centralized bidding within three months after 15 trading days from the date of this announcement, and by no more than 5,203,000 shares (accounting for 1.50% of the company's total share capital) through block trading. In 2017, Jiang Liujian passed away due to illness, and the shares he held in Jiejia Weichuang were inherited by Liang Meizhen and his children; Liang Meizhen and Jiang Zeyu are mother and son. Liang Meizhen is the widow of Jiang Liujian, the founder of Jiejia Weichuang.

In contrast, the equipment company Maiwei Co., Ltd. appears to be more "noble." The actual controller Zhou Jian has not reduced his holdings but has been "covering" for other shareholders to reduce theirs. Similar situations exist with Huang Min of Goodway and Shao Jianxiong of Hemai Co., Ltd., among others.

Have you noticed that Gaoce Co., Ltd., Jiejia Weichuang, and Autowell have many common points:

First, they all belong to the equipment industry, are all photovoltaic sellers, and are also barometers of the photovoltaic industry; they understand the photovoltaic industry better.

Second, they are the kings of their respective fields.

Gaoce Co., Ltd.'s slicers have directly undercut industry prices, leaving competitors with no way out—Hongyuan Green Energy has almost stopped selling slicers externally. Of course, this indicates Gaoce Co., Ltd.'s strong market competitiveness.

Not only has Gaoce Co., Ltd. defeated competitors in slicer equipment, but it has also extended its reach into the slicing field, engaging in silicon wafer processing business The total planned capacity for slicing at Gaoce is 102GW, of which 63GW has already been established, distributed in Yibin and Leshan in Sichuan, and Yancheng in Jiangsu. The gross profit margin for this business once exceeded 40%.

Because Gaoce Co., Ltd. is very competitive. Therefore, there has always been a rumor in the industry: "Gaoce Co., Ltd. will always keep the most advanced slicers for itself, ensuring that two more wafers can be sliced from each kilogram of silicon ingot, and the company's slicing business will continue to thrive."

In short, Gaoce Co., Ltd. has made significant contributions to the competition in the photovoltaic silicon wafer industry!

There is no need to say much about Jiejia Weichuang. By providing TOPCon complete line equipment for the entire industry and promoting turnkey projects, it has made the originally advanced technology of TOPCon accessible to anyone. Any outsider or cross-industry player can easily enter the market. With the oversupply of TOPCon capacity, Jiejia Weichuang is undoubtedly the primary contributor.

Autowell is not innocent either. Autowell originally focused on string welding machines, but during this wave of photovoltaic enthusiasm, it has continuously enriched its production line through acquisitions, successfully capturing multiple markets such as monocrystalline furnaces.

Postscript

These competitive players in the photovoltaic industry, in order to capture the market, indiscriminately serve all customers, big and small, fattening their own performance, making them the primary contributors to the internal competition in photovoltaics.

Now, is the controlling shareholder really ready to step down so easily? How much chill from the photovoltaic industry will flow into the equipment sector? According to Gan Tanhao's judgment, when photovoltaic equipment companies collectively face crises, it may be the true dark moment for the photovoltaic industry. Somehow, when it comes to the future crises of equipment companies, the author surprisingly feels little sympathy.

It is estimated that the main material companies in photovoltaics still somewhat envy the equipment companies because they cannot escape even if they want to. Except for Canadian Solar, no other photovoltaic main material company's controlling shareholders or executives have reduced their holdings in their own companies; on the contrary, they are all repurchasing, and their executives are increasing their holdings in their own stocks.

Public information shows: Canadian Solar was listed on the Shanghai Stock Exchange's Sci-Tech Innovation Board on June 9, 2023. In December last year, Beta Metric Limited and Wuxi Yuanhe Zhongyuan Yongneng Venture Capital Partnership (Limited Partnership) collectively reduced their holdings by 1.50%; in June this year, Yuanhe Zhongyuan planned to reduce its holdings by no more than 110,646,519 shares (accounting for 3% of the total share capital).

This time, Yuanhe Zhongyuan's reduction was close to a clearance-style reduction, from an initial 4.32% to only 0.57% after the reduction. Yuanhe Zhongyuan is not a typical financial investor but is backed by state-owned assets in Suzhou.

Author of this article: Xiaohailang, Source: [Gan Tanhao Technology](https://mp.weixin.qq.com/s?__biz=Mzg3NDc3MzIyMw==&mid=2247512826&idx=1&sn=c15e21a47e0a90c250e1998f2cb49df2&chksm=cf7214f599549d6054c3e4efcd26dc46749630a9628c0e305061f96cfa6f1d596aa5a543144e&mpshare=1&scene=23&srcid=0711PJMS1FOYDJK3L3TZNJlY&sharer_shareinfo=a33a90055149ae6a372259eb18e00320&sharer_shareinfo_first=8e5bf4baca02661d3b1ff1 504ac5c3e6#rd), Original title: "Just as the photovoltaic industry is lifted out of the ICU, are the major shareholders ready to run away?"

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