The Short Life of Chongqing Shenhua's 7.5 Billion Photovoltaic Project

, the bankruptcy court of Chongqing announced that In the bankruptcy liquidation case (2022) Yu 05 Po No.236 of Chongqing Shenhua Thin Film Solar Energy Technology Co., Ltd. (Hereinafter referred to as "Chongqing Shenhua") accepted by the Fifth Intermediate People's Court of Chongqing, the administrator will dispose of the property in the litigation assets network of the People's Court from 10:00 on August 7, 2023 to 10:00 on August 8, 2023. Starting price 6.

The auction items include 187 items of machinery and equipment, such as counterbalanced forklift trucks and glass transfer trucks; 694 items of office furniture and electronic equipment such as notebook computers; 7 buildings under construction and 2 production line equipment; Selenium \ 99.

production line has not been fully commissioned with the introduction of German technology." How can enterprise whose production materials are all expired go bankrupt without putting into production?

Industry and commerce data show that Chongqing Shenhua was established in January 2017, with registered capital of 12. Related contributions are cash contributions.

December 21, Chongqing Shenhua CIGS thin film solar cell module project started, with a total investment of 7.5 billion yuan, to be implemented in three phases. The first phase of the project is expected to be completed and put into operation in May 2019, with a production capacity of 306 MWP and an annual output value of about 1 billion yuan. After the completion of the third phase of the project, six production lines will be formed, with an estimated capacity of 1 GWP and an annual output value of 3 billion yuan at full load.

Liangjiang New Area said that the technology involves many fields, spanning three dominant manufacturing industries, three characteristic industries and 10 strategic emerging industries vigorously cultivated by Liangjiang New Area. The commencement of this project will become an important milestone in the development of clean energy industry in Liangjiang New Area and boost the development of new energy industry in Chongqing.

However, Planning can not catch up with due to delay, and did not rise again. The project went bankrupt directly. On January 21,

2022, Chongqing Shenhua held the seventh meeting of the second board of directors, deliberated and passed the Bill on Provision for Asset Impairment, and Chongqing Shenhua decided not to continue the industrialization project of copper indium gallium selenide solar cell modules.

According to the relevant provisions of the Accounting Standards for Enterprises, in order to accurately reflect the assets, finance and operation of Chongqing Shenhua in 2021. Chongqing Shenhua needs to make provision for asset impairment 14.

It is worth noting that Shanghai Electric, as a shareholder of Chongqing Shenhua, will also provide a guarantee of no more than RMB 300 million to Chongqing Shenhua.". If Chongqing Shenhua fails to repay the relevant debts on time, Shanghai Electric will also be liable for joint and several guarantees, and the corresponding maximum risk exposure will not exceed RMB 300 million. According to the annual report

of Laibao Hi-Tech in 2022, as of July 2022, the total assets of Chongqing Shenhua were 588 million yuan, the net assets were -210 million yuan, and the net profit was 5095.

As to why the project should be suspended, we can see from the proposal of the board of directors of Chongqing Shenhua. According to the proposal of the board of directors of

Chongqing Shenhua, at present, crystalline silicon products are the main products in the photovoltaic module market. After nearly 20 years of industrialization development, crystalline silicon photovoltaic modules have achieved rapid cost reduction through efficiency improvement, technological innovation and market scale development, and mature industrial chain. However, the research and development strength of CIGS thin film photovoltaic products is weak, the product conversion efficiency is slow to improve, and the industrial chain is not yet mature. If the project enters the production stage, Chongqing Shenhua will have revenue and cost inversion, resulting in large losses.

"The advantages of copper indium gallium selenide batteries are safety and beauty, and their products have unique advantages in the application of building curtain walls, but the market segment is subject to the complexity of the construction industry and the constraints of current norms, and it is impossible for large-scale explosive growth to occur in the short term."

In order to avoid greater losses, Chongqing Shenhua completed its self-closure.

In addition to Chongqing Shenhua, Manz, a German partner, has also completely withdrawn from the photovoltaic industry.

Earlier, in July 2022, Manz, a German company, had publicly stated that it would cancel 23.2 million euros in unpaid negotiations with Chongqing Shenhua. Manz, a German company, believed that it had completed 198 million euros in services, but the payment was

more exaggerated. Manz will completely withdraw from the photovoltaic business, will not carry out any further technology development in the field of CIGS thin film solar technology, and has stopped working in the market.

PV cell technology can be broadly divided into three generations.". The first generation is based on crystalline silicon solar cells; the second generation is based on thin film solar cells, which are typically represented by copper indium gallium selenide (CIGS), cadmium telluride (CdTe) and other solar cells; the third generation is based on new thin film solar cells such as perovskite.

Since 2009, Hanergy has established eight photovoltaic bases throughout the country." It also controls Hong Kong-listed Hanergy Thin Film Power (00566), which saw its share price soar from November 2014 to March 2015, reaching a market value of more than HK $300 billion at one point.

In 2015, Li Hejun became the richest man in China with a net worth of 160 billion, beating Ma Yun.

However, after the climax, Hanergy began to fall. In May

2015, the Hong Kong Securities Regulatory Commission announced an investigation into HTF. Since then, HTF's share price has continued to fall and has not yet resumed trading. On December 17, 2022, Li Hejun was taken away by Liaoning Jinzhou police to assist in the investigation. In April 2023, the First Intermediate People's Court of Beijing accepted the bankruptcy liquidation applications of nine companies under the Hannon Department. The

same bankruptcy fate was repeated in Chongqing Shenhua. In May 2022, China Energy Conservation and Emission Reduction, the major shareholder of Chongqing Shenhua, filed a bankruptcy application for Chongqing Shenhua with the Fifth Intermediate People's Court of Chongqing.