On January 22, Huamin Co., Ltd. issued an announcement stating that its holding subsidiary, Honsun Solar, will introduce JA Solar (Wuxi) Photovoltaic Technology Co., Ltd. — a wholly-owned great-grandchild company under the umbrella of industry leader JA Solar Technology Co., Ltd. — through a debt-to-equity swap.
Pursuant to the Debt Restructuring and Investment Agreement, this transaction is based on Honsun Solar’s pre-investment valuation of RMB 1 billion. JA Solar (Wuxi) will directly convert its RMB 200 million creditor’s rights against Honsun Solar into equity interests.
In terms of specific fund allocation, out of the RMB 200 million in creditor’s rights, RMB 116 million will be credited to Honsun Solar’s registered capital, with the remaining RMB 84 million recorded as capital reserve. After conversion, the price per share is set at RMB 1.72 per unit of registered capital.
Upon completion of the transaction, JA Solar (Wuxi) will hold 16.41% equity interest in Honsun Solar and become one of its major shareholders. Meanwhile, Huamin Co., Ltd.’s shareholding ratio will be adjusted to 73.74%, maintaining its controlling stake, and Honsun Solar will continue to be included in the listed company’s consolidated financial statements.
Concurrently, the capital increase plan of Chint New Energy, a strategic investor previously introduced by Honsun Solar, has also been adjusted. Following negotiations, the capital contribution amount from Chint New Energy has been revised from the originally planned RMB 75 million to the actually received RMB 18.75 million. The above-mentioned industrial and commercial registration changes will be processed simultaneously with this capital increase by JA Solar (Wuxi). After the completion of this capital increase and share expansion, Honsun Solar’s registered capital will rise to RMB 707 million.
For Honsun Solar, the introduction of JA Solar (Wuxi) is not only a financial "blood transfusion" but also an asset-liability sheet "streamlining".
Financial data shows that as of the end of 2024, Honsun Solar’s total liabilities reached as high as RMB 2.576 billion, with net assets of only RMB 68.4969 million and a net loss of approximately RMB 282 million in 2024. Through this debt-to-equity swap, Honsun Solar will directly reduce its debt by RMB 200 million, significantly lower its asset-liability ratio, and improve its financial health.
From a strategic perspective, JA Solar (Wuxi) is backed by photovoltaic giant JA Solar Technology. As a leading industry player with a comprehensive industrial chain and coordinated structural layout, JA Solar Technology boasts profound strength in the fields of silicon ingots, wafers, cells and modules. This cooperation marks the upgrade of the relationship between Honsun Solar and JA Solar Technology from business transactions to in-depth capital binding.
Source：EnergyTrend