DMEGC(SZ:002056) Xin Lang Cai Jing·2026-01-09 01:27Core Viewpoint - The company Hongdian Dongci, known as a "profit king" in the photovoltaic sector, is facing a trust crisis due to the cancellation of tax benefits for its solar components by the French certification body Certisolis, stemming from errors in documentation related to carbon footprint calculations [3][14]. Group 1: Impact on the Company - The cancellation of the 5.5% VAT tax rate for four solar components will lead to increased costs, as these components will now be sold at a 20% VAT rate, significantly raising installation costs for end users [6][16]. - Hongdian Dongci claims that this issue will not affect its overseas market performance, asserting that its financial results remain strong [4][14]. - The company has acknowledged the documentation errors and has withdrawn potentially affected components while notifying distributors that others can continue to be sold at the higher VAT rate [6][15]. Group 2: Broader Industry Implications - The incident may trigger a chain reaction affecting other Chinese photovoltaic companies, as Certisolis may need to reassess compliance for numerous applications, potentially damaging its credibility [5][14]. - The certification process for carbon footprint may become more stringent, complicating future applications for Chinese manufacturers seeking to enter European markets [7][16]. - The European market is increasingly prioritizing local production, as indicated by the upcoming EU "Net Zero Industry Act," which mandates that by 2030, at least 40% of solar panels must be manufactured within Europe [10][19]. Group 3: Financial Performance and Market Position - Hongdian Dongci's revenue from photovoltaic products has reached 80.54 billion yuan, accounting for 67.47% of its total revenue, with a net profit of 10.20 billion yuan [9][18]. - The company reported a 56.8% year-on-year increase in net profit for the first three quarters of 2025, amounting to 14.52 billion yuan [9][18]. - The company's overseas business accounts for 48.24% of its revenue, with North America being a significant profit driver [19]. Group 4: Inventory and Shareholder Actions - Since 2025, Hongdian Dongci's inventory has been rising, reaching 4.967 billion yuan by the third quarter, which is 19.37% of total assets, reflecting a 32.49% increase compared to the end of 2024 [11][20]. - The controlling shareholder, Hongdian Group, plans to reduce its stake by up to 16.26 million shares, representing 1% of the total shares, which could yield over 300 million yuan [12][20].