The market value of 15 billion yuan is in ashes, another photovoltaic company is suspended and delisted, and 100,000 shareholders can't sleep late at night!

Energy Research Institute

2024-06-18 16:16Published in Hunan

On the evening of June 14, ST Sunshine (600220.SH) announced that it had recently received the legal document of the "Civil Complaint" served by the People's Court of Jiangyin City, Jiangsu Province.

According to the announcement, on March 22, 2024, ST Sunshine signed the "Small Enterprise Loan Contract" with ICBC Jiangyin Branch, with a loan amount of 99.9 million yuan and a loan period until March 21, 2025.

However, ICBC Jiangyin Sub-branch believed that Jiangsu Sunshine's business conditions had undergone significant changes, which had a material adverse impact on its creditor's rights, so it decided to terminate the loan contract and filed a lawsuit with the Jiangyin Municipal People's Court.

ICBC Jiangyin Sub-branch demanded that ST Sunshine repay the loan principal of 99.9 million yuan and the corresponding interest, and compensate the loss of 200,000 yuan in lawyer's agency fees.

With regard to the principal and interest of the above-mentioned loan and the litigation costs of this case, ICBC Jiangyin Sub-branch stated that it has the right to discount the immovable property at No. 78 Xigan Road and No. 259 Changjiang North Road in Wuxi City, which is mortgaged by Wuxi Jufeng Real Estate Investment Co., Ltd., or to be compensated preferentially within the maximum amount of 403 million yuan with the proceeds from auction or sale; The proceeds from the sale shall be compensated in priority within the maximum amount of 425 million yuan, and the land use rights of the upper villages, friendship villages and Tianshenggang villages in Huangtu Town, Jiangyin City, which are mortgaged by Jiangsu Dajiang Metal Materials Co., Ltd., shall be compensated at a discounted price, or the proceeds from auction or sale shall be compensated in priority within the maximum amount of 72.0881 million yuan.

ICBC Jiangyin Sub-branch also requested Jiangsu Sunshine Group Co., Ltd., the controlling shareholder of the company, to bear joint and several liability for the principal and interest of the above-mentioned loan within the maximum amount of 480 million yuan, and Lu Keping, the actual controller of the company, and his wife Yu Qinfen, to bear joint and several liabilities, and the defendants in this case should bear the litigation costs.

ST Sunshine said that the company attaches great importance to this litigation and will actively respond to the lawsuit. Since the litigation case has not yet been tried in court, there is still uncertainty about the subsequent judgment results, and it is impossible to judge the impact on the company's current or future profits.

It is worth noting that on June 13, ST Sunshine announced that the daily closing price of the company's shares for 20 consecutive trading days was less than RMB 1, which has touched the trading delisting index stipulated in the "Shanghai Stock Exchange Stock Listing Rules", and the company's shares will be suspended from the opening of the market on June 14, 2024.

On the same day, ST Sunshine received the "Prior Notice on the Proposed Termination of the Listing of Jiangsu Sunshine Co., Ltd.'s Shares" issued by the Shanghai Stock Exchange, and the Shanghai Stock Exchange will make a decision to terminate the listing of the company's shares.

Jiangsu Sunshine was ST because Lixin Certified Public Accountants issued a negative audit report on its internal control, and the controlling shareholder's non-operating funds occupied as much as 170 million yuan, which is expected to be unable to be repaid within one month.

The company also had serious problems with information disclosure and internal governance.

On September 14, 2022, Jiangsu Sunshine received the "Notice of Case Filing" from the China Securities Regulatory Commission and was placed on file for investigation on suspicion of illegal information disclosure. Then, on October 14, 2022, Jiangsu Sunshine received the "Administrative Penalty Prior Notice" from the Jiangsu Securities Regulatory Bureau, and received the "Administrative Penalty Decision" on October 20.

The situation escalated further on December 23, 2023, and Lu Keping, the actual controller of Jiangsu Sunshine, was again investigated on suspicion of illegal information disclosure.

On May 7, 2024, Jiangsu Sunshine Group was fined 232 million yuan for suspected insider trading. Successive investigations and penalties have exacerbated concerns about the company's future.

According to the data, Jiangsu Sunshine was established in 1994 and is mainly engaged in the production and sales of woolen fabrics and electrical products. The company has been involved in clothing, biomedicine, medical equipment, ecological agriculture and forestry, real estate, metal products and other fields. Listed in 1999, it is a well-known woolen enterprise in China.

Around 2008, Jiangsu Sunshine entered the photovoltaic field, and once became the darling of the capital market due to the concept of speculation, with a share price of as high as 9.42 yuan per share (before the right to reset), with a total market value of more than 15 billion yuan.

In 2022, the company announced plans to invest in integrated photovoltaic projects in Baotou, Inner Mongolia, and Shizuishan, Ningxia, covering polysilicon, wafers, cells, and modules, but these projects were ultimately not implemented.

As of March 31, 2024, the number of shareholders of Jiangsu Sunshine is about 100,000, and as of the end of the suspension, Jiangsu Sunshine's share price closed at 0.37 yuan per share, with a market value of 660 million yuan.

The delisting of ST Sunshine is just the beginning. If the PV industry continues to be sluggish, more listed companies may be on the verge of delisting in the future due to financial difficulties.

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