Yijing Optoelectronics 140 Million Investment Fund Dispute: Photovoltaic Industry Overcapacity and Risk Assessment

According to the latest announcement, Yijing Optoelectronics (600537.SH) received a “Hearing Notice” from the Management Committee of Anhui Quanjiao Economic Development Zone on December 28, 2025, intending to make an administrative decision on the failure of the company and its subsidiaries Changzhou Yijing and Chuzhou Yijing to fully perform the relevant matters of the investment agreement [1]. The disputed investment fund amount is as high as

, and the company has applied for a hearing in accordance with the law, but the procedure has not yet started.

Financial Indicators	Data	Explanation
Disputed Amount	140 million yuan	Proposed recovered investment fund
Proportion of Losses	About 65%	Share of losses in the first three quarters of 2025
Status of Chuzhou Project	Suspended	7.5GW TOPCon battery capacity停产
Changzhou Base	Suspended	5GW PERC battery capacity停产
Component Capacity Utilization Rate	About 40%	Current utilization level

• 2017: Xun Jianhua transferred control to Qinchengda Investment with a transaction amount of approximately 2.9 billion yuan
• End of 2020: Control transferred to Gu Hanning (son of Gu Yaoming)
• Since 2023: Due to related party debt crisis, equity has been frozen and judicially auctioned successively
• 2025: After the equity transfer of Weizhi Energy was completed, the company entered the
  state of no controlling shareholder or actual controller
  [2]

The top four shareholders each hold less than 5% of the shares, and the equity is highly dispersed, which poses severe challenges to major investment decisions and risk response capabilities.

The above chart clearly shows the financial deterioration trend of Yijing Optoelectronics:

Year	Net Profit Attributable to Parent Company (100 million yuan)	Year-on-Year Change	Main Reasons
2020	-6.52	-	Industry cycle downturn
2021	-6.03	+7.5%	Sustained pressure
2022	+1.27	Profit turned positive	Industry prosperity recovery
2023	+0.68	-46.5%	Profitability weakened
2024	-20.90	Sharp turn to loss	In-depth industry adjustment
2025Q1-Q3	-2.14	Year-on-year loss reduction	Industry reshuffle continues [1]

According to the 2025 semi-annual report data, the company faces multiple financial pressures:

• Controlling shareholder risk
  : Related parties are involved in real estate business contract disputes, with the principal amount of guaranteed debt default being approximately 5.803 billion yuan
• Liquidity pressure
  : If the 140 million yuan investment fund is recovered, combined with construction agency fees, rent, and capital occupation costs, the current profit and loss and cash flow will be further under pressure
• Stock price performance
  : As of the close on December 29, 2025, the stock price closed at 4.23 yuan per share, a drop of
  93%
  from the historical high of 60.42 yuan per share in 2011 [2]

According to data from the China Photovoltaic Industry Association, the total loss of enterprises in the main industrial chain of the photovoltaic industry in the first three quarters of 2025 reached

, of which the loss in the third quarter was 6.422 billion yuan. Although it narrowed by 46.7% compared with the second quarter, the loss situation has not been fundamentally reversed [3].

Enterprise	Net Loss (100 million yuan)	Characteristics
TCL Zhonghuan	-58.16	Most serious loss
JinkoSolar	-39.42	Turned from profit to huge loss
Longi Green Energy	-34.00	Sustained loss
Tongwei Co., Ltd.	-5.92	Relatively better
Yijing Optoelectronics	-2.14	Small scale [4]

In 2025, “anti-involution” became the consensus of the industry, and capacity clearance is accelerating:

1. Policy level
   :
   • July 16: The High-Quality Development Conference of the Photovoltaic Industry launched cost investigation
   • NDRC and SAMR jointly issued the “Price Law Amendment Draft”, clarifying the criteria for determining predatory pricing
   • Policy regulations set a red line for low-price competition in the industry [3]

2. Market level
   :
   • ST Lukang
     : Plans to sell 100% equity of three subsidiary companies engaged in film business at 0 yuan
   • Tianyang New Materials
     : Terminated investment in Kunshan and Haian photovoltaic film projects
   • Enterprises such as
     Runyang Technology
     have successively transferred equity, and industry resources are concentrated to high-quality entities [3]

3. Price trend
   :
   • Component price index is currently 13.72, an increase of only 1% from the previous low of 13.58
   • Industrial chain prices have not been effectively transmitted to the terminal

Currently, photovoltaic cell technology is undergoing a key transition from P-type to N-type:

Technology Route	2020-2021	2022-2023	2024-2025	2026+
PERC	85%	73%	30%	5%
TOPCon	10%	20%	55%	60%
BC	5%	7%	15%	35%

According to the prediction of the China Photovoltaic Industry Association, the penetration rate of N-type components will rise to

in 2024, forming a “3:7” situation with P-type, and P-type products may gradually withdraw from the market in 2025 [5].

• Changzhou Base
  : 5GW PERC battery capacity — faces technical obsolescence risk
• Chuzhou Base
  : 7.5GW TOPCon battery capacity — has been suspended

Risk Dimension	PERC	TOPCon	BC	Impact on Yijing Optoelectronics
Technical route selection risk	High(90)	Medium(50)	Medium(35)	Bet on TOPCon but project suspended
Capacity upgrade cost	High(80)	Medium(55)	High(65)	High pressure on upgrade funds
Patent risk	Medium(70)	Medium(60)	High(80)	Patent litigation risk exists
Market demand change	High(85)	Medium(40)	Low(30)	P-type demand shrinks rapidly
Policy uncertainty	Medium(75)	Low(45)	Low(40)	Policy supports technological upgrading

• Mainstream TOPCon component power is 610-620W, head enterprises have 630-640W delivery capacity
• 2026 target is to develop to 650-670W, head enterprises still maintain 0.5-0.6 percentage points of efficiency improvement space
• Main efficiency improvement methods include: front-side optimization, metallization process upgrade (mass application of base metals) [5]

• January 2025: JinkoSolar sued Longi Green Energy for patent infringement related to TOPCon
• October: The two parties reached a settlement, but the patent dispute highlights the risk of technical routes
• The technical route dispute between BC and TOPCon continues, and enterprises need to face technical uncertainty [4]

• Longi Green Energy once missed the N-type battery route and spent a lot of money on BC battery research and development
• Leading to obstacles in BC battery development, and N-type capacity is also in the catching-up state
• After the breakthrough of HPBC 2.0 technology, it still fell into the quagmire of losses, and the choice of technical route has far-reaching impact [4]

• The risk exposure of the 140 million yuan investment fund recovery is equivalent to about 65% of the losses in the first three quarters
• Under the state of no actual controller, governance coordination and decision-making efficiency are facing challenges
• Cash flow pressure may lead to further asset impairment

• PERC capacity faces accelerated obsolescence risk, and asset impairment pressure continues
• TOPCon project is suspended, losing the window period for technological upgrading
• Component capacity utilization rate is only 40%, which is difficult to amortize fixed costs

• The stock price differentiation of the top five enterprises in the industry intensifies, and resources are concentrated to the head
• Second and third-tier enterprises have successively sold equity or projects
• Small and medium-sized enterprises lacking scale and cost advantages are facing survival crisis

1. Accelerated capacity clearance
   : Industry self-discipline and policy regulations promote the exit of backward capacity
2. Gradually clear technical routes
   : TOPCon becomes the mainstream in the transition period, and BC is expected to become the ultimate form
3. Demand still has growth space
   : Although facing absorption pressure, the long-term growth trend of photovoltaic power generation demand remains unchanged

Risk Level	Evaluation Points	Recommendations
High Risk	No actual controller status, investment fund dispute, project suspension	Avoid or be extremely cautious
Medium-High Risk	PERC capacity obsolescence, sustained losses	Pay attention to asset impairment risk
Medium Risk	Technical route selection, patent risk	Track industry technical progress
Medium-Low Risk	Industry reshuffle, policy support	Pay attention to leading enterprise opportunities

• Final result of the hearing procedure and potential compensation amount
• Resumption progress of Chuzhou project
• Changes in equity structure and trends of new controllers
• Industry capacity clearance speed and price trends

Yijing Optoelectronics’ 140 million yuan investment fund dispute is a microcosm of the deep adjustment period of the photovoltaic industry. Under the

, small and medium-sized enterprises lacking core competitiveness and financial strength are facing survival crisis.

From an investment perspective, Yijing Optoelectronics is facing the superposition of three dilemmas:

, with extremely high risks. The technological iteration risks of the photovoltaic industry are mainly reflected in:

1. Technical route selection risk
   : From PERC to TOPCon to BC, the technical route evolves rapidly, and betting on the wrong technical route may lead to huge investment losses
2. Capacity upgrade cost risk
   : Technological iteration requires continuous capital expenditure, and the financial pressure is huge during the industry loss period
3. Patent risk
   : The patent layout of head enterprises increases the legal risks and costs of technology followers
4. Time window risk
   : The time window for technological iteration is limited, and backward capacity faces rapid depreciation

For investors, during the adjustment period of the photovoltaic industry, they should focus on leading enterprises with

, and avoid high-risk targets.

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[1] Sina Finance - Yijing Optoelectronics陷140 Million Investment Fund Accountability Storm: Chuzhou Project Suspended (https://finance.sina.com.cn/jjxw/2025-12-29/doc-inhenpkc7793209.shtml)

[2] Eastmoney - Yijing Optoelectronics陷140 Million Investment Fund Accountability Storm: Chuzhou Project Suspended (https://wap.eastmoney.com/a/202512293604589336.html)

[3] China Financial Information Network - 2025 Photovoltaic Industry Battle: From Price Competition to Value Reconstruction (https://finance.sina.com.cn/money/bond/2025-12-22/doc-inhcrpzq9384274.shtml)

[4] Caifuhao - Cross-border Energy Storage, Debt Ratio Over 62%: Longi Green Energy’s “Critical Leap” (https://caifuhao.eastmoney.com/news/20251209110613976476420)

[5] Zhongtai Securities Research Institute - Anti-involution Advances Steadily, Optimistic About New Technologies and Optical Storage Synergy (https://pic-test-gjmetal-1324067834.cos.ap-shanghai.myqcloud.com/newsv2/6831690ff7d142e19e871e6ce0a5ef3a20251223164319.pdf)