Shenzhen Stock Exchange rejects Das Solar’s listing plan

The Shenzhen Stock Exchange has rejected Das Solar’s planned IPO because its sponsor, Sinolink Securities, has withdrawn from the Chinese company’s eight-month effort to list its shares.

Das Solar, founded in 2018 by Liu Yong – a graduate of the University of Science and Technology of China, with a background in semiconductor manufacturing at SMIC – has faced significant challenges. Liu, who transitioned to the PV sector in 2008, previously held key roles at JA Solar, Longi Green Energy, and Jolywood.

Das Solar’s founding shareholders included major industrial funds such as State Power Investment Corp. (SPIC), Sinopec, CICC Capital, and Boshi Capital, along with Longi Lerri, a subsidiary of Longi Green Energy, which has previously invested CNY 20 million ($2.8 million) for a 15% stake. However, Longi Lerri exited its investment in Das Solar by the end of 2020.

Das Solar has focused on developing advanced n-type tunnel oxide passivated contact (TOPCon) solar cells and modules, leading to rapid growth. Its annual revenues soared from CNY 1.89 billion in 2021 to CNY 22.72 billion in 2023.

Das Solar's IPO application, filed in December 2023, faced scrutiny from the exchange in January 2024, with financial updates provided in June. It aimed to raise CNY 2.5 billion to expand its TOPCon production capacity and shore up its working capital. Its failed IPO plan now threatens to disrupt its operations, particularly as component prices decline and capital needs rise for research, production upgrades, and marketing.