Core Points - Liansheng Technology announced the termination of its plan to acquire 69.71% of Xingshu Century's shares due to failure to reach an agreement on key terms with the parties involved [1][4] - The company confirmed that the decision to terminate the restructuring was made after careful research and does not involve any breach of contract liabilities [1] - Liansheng Technology has committed not to plan any major asset restructuring within one month from the announcement of the termination [1] Company Overview - Liansheng Technology has focused its capital operations on the renewable energy sector since establishing heterojunction (HJT) solar cell business as its strategic direction in 2022 [1] - The target company, Xingshu Century, specializes in the research and application of intelligent microgrid solutions, covering household energy storage, commercial energy storage, and sodium-ion battery development [1] - Xingshu Century has a total photovoltaic power station scale exceeding 2.2 GW and an energy storage installation capacity of over 1 GWh [1] Related Parties - The transaction involved parties from the ZTE system, with ZTE Weixiantong holding 22.0952% and ZTE Development holding 11.7841% of Xingshu Century's shares, collectively exceeding 35% [2]

Core Viewpoint - The article discusses the challenges faced by the solar energy sector, particularly focusing on the struggles of Liansheng Technology, which is attempting to pivot towards energy storage amid a difficult photovoltaic market [2][9]. Group 1: Company Overview - Liansheng Technology, under the leadership of Huang Mingliang, has a diversified portfolio but is primarily struggling in the solar energy sector [2][3]. - The company has a high debt ratio of 74.37% as of the end of 2024, indicating significant financial pressure [4]. - As of the end of 2024, Liansheng Technology reported a net asset of 242 million yuan, with a revenue of 501 million yuan, reflecting a year-on-year growth of 121.79% [5]. Group 2: Financial Performance - The company reported a net loss of 110 million yuan for 2024, a decline of 177.65% year-on-year, and a non-recurring net profit loss of 139 million yuan, down 234.09% [5]. - The gross margin for its main product, solar cells and modules, was -27.08% in 2024, indicating unprofitability in its core business [7]. Group 3: Market Challenges - The photovoltaic market is currently oversaturated, leading to continued losses for Liansheng Technology's solar business [8]. - The company has been unable to significantly increase its production capacity, with only 1.8 GW of solar cell production capacity as of the end of 2024, despite ambitious plans [12][14]. Group 4: Strategic Moves - Liansheng Technology is pursuing a major asset restructuring to acquire a 69.71% stake in Xingshu Century, a storage platform under the ZTE system, as part of its strategy to diversify into energy storage [16][32]. - Xingshu Century has shown better financial performance, with revenues of 1.037 billion yuan and 980 million yuan in 2023 and 2024, respectively [17]. Group 5: Future Outlook - The acquisition of Xingshu Century is seen as a potential way for Liansheng Technology to leverage synergies, although the feasibility of this integration is questioned given Liansheng's current market position [33][34]. - The competitive landscape for energy storage is becoming increasingly challenging, with many companies facing declining margins and profitability [26][28].