On the evening of September 9, Chinese media reported, citing informed sources, that global battery manufacturing giant Contemporary Amperex Technology Co., Limited (CATL) is in talks to acquire DAS Solar, one of the top ten companies in terms of solar module shipments.
If this deal is finalized, DAS Solar will receive billions in funding, which will not only help it navigate the current industry downturn but also further enhance CATL's integrated solar energy storage and charging business layout.
The integration of solar energy storage and charging has become a hot topic in recent years, focusing on combining elements such as photovoltaics, energy storage, and charging piles to create a new power system. As a leading player in global battery and energy storage technologies, CATL has been paying attention to the solar energy storage and charging market since 2022. The resignation of co-founder Huang Shilin has been interpreted in the industry as a significant step towards CATL's entry into the energy storage field.
In addition, CATL has been actively expanding its presence in the photovoltaic sector. Since 2019, it has partnered with Fujian Nebula Electronics to establish Fujian Contemporary Nebula Energy Technology, focusing on solar energy storage and charging business, and advanced the development of perovskite solar cells in 2022.
In 2023, CATL accelerated its investment pace in the photovoltaic sector, establishing multiple solar-related companies and conducting a series of acquisitions. For example, Contemporary Green Energy acquired two subsidiaries of LONGi Green Energy in June of this year. CATL's rapid expansion in the photovoltaic industry reflects its strategic adjustments to address challenges such as overcapacity and price wars.
The photovoltaic industry is currently experiencing an unprecedented downturn, with overcapacity and price wars leading to a "big fish eats little fish" phenomenon within the sector. For instance, leading photovoltaic company Tongwei acquired a 51% stake in Runergy New Energy Technology for 5 billion yuan, reflecting the trend of consolidation in the industry.
Since its establishment in 2018, DAS Solar has focused primarily on photovoltaic modules and cells; however, it has faced severe challenges to profitability amid setbacks in its public listing and intensified price competition. In the first half of 2023, DAS Solar's net profit attributable to shareholders dropped to 459 million yuan, indicating tight profit margins.
Data shows that DAS Solar's debt-to-asset ratio is generally higher than that of other photovoltaic companies, reflecting its weak financial situation. Additionally, fluctuations in raw material costs have a direct impact on its profitability. Company analysis indicates that changes in silicon wafer prices and module sales prices significantly affect profits. With the rising prices of silicon wafers and the continuous updating of bid prices for modules, DAS Solar faces greater profit pressures.
Notably, while DAS Solar has performed well in the domestic photovoltaic market, its overseas expansion has lagged. The proportion of foreign sales income to its main business revenue has been declining year by year, highlighting the urgency of expanding into international markets. Nevertheless, DAS Solar's R&D team is robust, holding over 340 patents, with core technologies overseen by students of Professor Martin Green, known as the "father of solar cells."
Against the backdrop of a deep adjustment in the photovoltaic industry, the talks between CATL and DAS Solar highlight the important role of market-oriented approaches in addressing industry challenges. As consolidation in the photovoltaic sector accelerates, whether CATL can successfully acquire DAS Solar will be a significant indicator of the effectiveness of its integrated solar energy storage and charging strategy.