CHINT ELECTRICS(SH:601877) Xin Lang Cai Jing·2025-09-04 07:40Core Viewpoint - The decision by Zhejiang Chint Aneng Digital Energy Co., Ltd. to withdraw its IPO application reflects both the company's soaring performance and the regulatory constraints on spin-offs, marking a strategic shift in the household photovoltaic sector amidst an energy revolution [1][2]. Group 1: Performance and Regulatory Constraints - The primary reason for the withdrawal of the IPO application is the regulatory rule that a subsidiary's net profit must not exceed 50% of the parent company's net profit. In the first half of 2025, Chint Aneng's net profit reached 1.901 billion yuan, a year-on-year increase of 49.9%, while Chint Electric's net profit was 2.554 billion yuan, resulting in a profit share of 74.4% from the subsidiary [2]. - Continuing with the IPO could risk the core profit source for Chint Electric and lead to a potential restructuring of the capital market valuation system [2]. Group 2: Market Transformation and Strategic Shift - The release of the notice on the market-oriented reform of new energy grid prices in early 2025 marked the end of the fixed price and subsidy era for photovoltaic energy. Chint Aneng acknowledged in its prospectus that the transition to market-based trading would introduce uncertainties in electricity pricing, potentially impacting company performance [3]. - In response to these uncertainties, Chint Aneng plans to upgrade its strategy from being a single power station developer to a comprehensive energy service provider, aiming to build a virtual power plant platform leveraging 50 GW of household assets to participate in electricity spot trading [3]. Group 3: Industry Landscape Changes - Chint Aneng's strategic pivot reflects a new competitive landscape in the household photovoltaic sector, where the market concentration of the top five companies has reached 62%, and price wars are intensifying. Competitors like Trina Solar and Sunshine New Energy are slowing their spin-off plans and focusing on strategic investments to expand their ecosystems [4]. - Under the "dual carbon" goals, the comprehensive energy service market is projected to reach a trillion yuan scale. Chint Aneng's president revealed plans to focus on key strategic areas such as virtual power plants and electricity trading, aiming to establish a leading national platform for virtual power plant aggregation and trading [4].