On the evening of December 4, Tianyang New Materials issued an announcement regarding changes to the use of certain proceeds from its fundraising activities. The company plans to terminate further investment in the “Nantong PV Encapsulation Film Project” and the “Hai’an PV Encapsulation Film Project,” which were part of the 2022 non-public offering fundraising plan, and redirect the remaining proceeds to new projects.
According to the announcement, the implementation entity for the “Nantong PV Encapsulation Film Project” is the wholly owned subsidiary Nantong Tianyang Photovoltaic Materials Technology Co., Ltd., while the “Hai’an PV Encapsulation Film Project” is implemented by the wholly owned subsidiary Hai’an Tianyang New Materials Technology Co., Ltd. Both projects were originally planned with a construction period of two years.
Previously, on November 11, 2022, Tianyang New Materials issued 99,847,765 ordinary shares (RMB-denominated) through a non-public offering. Each share carried a par value of RMB 1 and an issue price of RMB 9.88 per share, raising total proceeds of approximately RMB 986 million.
On May 26, 2025, the company postponed the scheduled completion dates—i.e., the dates when the Nantong and Hai’an projects were expected to reach their intended usable condition—from June 2025 to June 2026.
Tianyang New Materials stated that since the launch of these fundraising projects, PV module prices have remained at low levels, causing module manufacturers to operate below capacity. This, in turn, has resulted in a temporary demand downturn in the PV encapsulation film industry. As of the end of the third quarter of 2025, the supply–demand imbalance in the PV industry had not shown significant improvement. Persistently low-price competition in the PV encapsulation film segment has further widened the company’s losses in this business. To create greater value for shareholders and investors, improve profitability, and enhance the efficiency of fundraising utilization, the company decided to make this adjustment.
As of the date of the announcement, the Nantong project had reached an investment progress of 79.38%, with factory buildings totaling 88,260.89 square meters completed and 25 PV encapsulation film production lines installed. The Hai’an project had reached an investment progress of 31.33%, with factory buildings totaling 76,607.59 square meters completed.
The completed factory buildings of the Nantong and Hai’an projects will be allocated according to the needs of the company’s other business segments. Part of the facilities will be used for producing hot-melt mesh films and similar products, while the remaining areas may support new business activities in the future or be leased or sold. For the installed production equipment, some may be repurposed—after modification—for other product lines within the company, while the rest will be sold at an appropriate time depending on market conditions.
In addition, after approval by the relevant shareholders’ meeting, the company will gradually wind down its PV encapsulation film business and allocate the remaining fundraising proceeds to new project investments.
Source：EnergyTrend