On November 20, Xinyi Energy and Xinyi Solar jointly announced the sale of their controlling stake in Xinyi Solar (Tianjin) Co., Ltd. The transaction not only brings in over RMB 500 million in cash flow, but also reveals new strategic thinking within the Xinyi Group regarding asset optimization and portfolio restructuring.
According to the announcement, the core of this transaction is the sale of 51% of the registered capital of Xinyi Solar (Tianjin), which is the sole owner and operator of the 174 MW photovoltaic power plant located in the Huanggang area of Tianjin.
The seller is a wholly owned subsidiary of Xinyi Energy, while the buyer is Tianjin Binhai Jiantou New Energy Co., Ltd.
The agreed transaction amount totals RMB 514.59 million, with payments arranged in three installments: the first payment of RMB 51.46 million; the second payment of approximately RMB 453 million; and the final payment of RMB 10.29 million.
The deal is expected to be completed by December 31, 2025. Upon completion, Xinyi Solar (Tianjin) will no longer be a subsidiary of Xinyi Energy or Xinyi Solar.
Notably, even after selling 51% of the equity, Xinyi Energy will retain the remaining 49% stake in Xinyi Solar (Tianjin). This means Xinyi Energy will continue to benefit from the plant’s profitability and will receive dividends attributable to its retained interest.
At the same time, under the agreement, Xinyi Energy will continue to provide management services to the Huanggang-area PV power plant in Tianjin until both parties agree to terminate the arrangement, and will receive corresponding service fees.
The divestment not only enables Xinyi Energy Group to realize part of its existing investment and seize future investment opportunities, but also helps ensure the continued stable operation of the PV power plant in the Huanggang area of Tianjin.
Source：EnergyTrend