Chinese solar module producer Zhejiang Akcome New Energy Technology has filed for bankruptcy at its subsidiary, Zhejiang Akcome Photoelectricity Technology, citing an inability to repay debts. The bankruptcy petition, submitted by the parent company and accepted by the Changxing county court in Zhejiang province, was disclosed in a filing with the Shenzhen stock exchange on Monday.
As of April 30, Zhejiang Akcome Photoelectricity Technology's assets were valued at 2.513 billion yuan ($346.4 million), while its debts amounted to 1.562 billion yuan. This decision follows financial difficulties at the parent company, which led to the suspension of Akcome's shares from trading on June 19 after the stock price fell below 1 yuan ($0.14) for 20 consecutive days. The Shenzhen stock exchange announced on June 22 that it would terminate Akcome's listing.
The company, listed as a tier one global PV manufacturer by Bloomberg New Energy Finance for the second quarter of 2024, had previously announced on June 14 that it would halt production of some modules due to sales and supply chain issues. Additionally, Akcome withdrew from the International Photovoltaic Power Generation and Smart Energy Conference and Exhibition, citing “internal reasons” in a WeChat post dated June 8.
The solar panel market in China has faced significant challenges due to a surge in oversupply, resulting in prices dropping below production costs and squeezing profit margins. Industry experts predict that prices may not recover until late 2024 or beyond. A reduction in new solar manufacturing projects, down over 75% year-on-year in the first half of 2024, and the suspension or cancellation of numerous projects could potentially lead to a rationalisation of prices.
The China Photovoltaic Industry Association (CPIA) reported that over 20 projects in planning or construction stages have been cancelled or suspended, affecting substantial capacities across polysilicon, silicon wafers, solar cells, and modules. Utilisation rates at production facilities are around 50-60% on average, with several companies suspending operations both domestically and internationally.
