The dream of diversification has turned into a billion-yuan nightmare for Fanfan Shares, a major Chinese power equipment manufacturer. On May 6, the company announced its intention to sell its 60% stake in its solar subsidiary, Suzhou Jingying Photoelectric Technology, at a starting price of just 178.8 million RMB. This fire sale represents a staggering loss of value, considering the company acquired the same stake for 9.6 billion RMB less than three years ago in June 2023.
This dramatic divestment marks the end of a short-lived and disastrous pivot into the renewable energy sector. At the time of the acquisition, Fanfan Shares envisioned a future where solar energy would optimize its business layout and provide a new engine for growth. Instead, the subsidiary became a financial sinkhole, plagued by the systemic issues of overcapacity and predatory pricing that have come to define the contemporary Chinese solar landscape.
Financial records reveal a grim trajectory for Jingying Photoelectric. Since the takeover, the subsidiary has posted cumulative losses exceeding 600 million RMB, with a net debt of over 1.5 billion RMB as of early 2026. The parent company’s bottom line has been dragged into the red, reporting a net loss of 387 million RMB for 2025, a collapse largely attributed to the solar unit's operational failure and massive goodwill impairments.
The final blow came not from the market, but from a literal blaze. In March 2026, a major fire broke out at a key slicing workshop belonging to one of Jingying’s subsidiaries, causing significant damage to machinery and infrastructure. While the company claims the sale price reflects the impact of this accident, the fire appears to have served as the ultimate catalyst for Fanfan Shares to cut its losses and abandon its 'green energy' ambitions entirely.