Lianhe Credit Rating Co., Ltd. has affirmed the long-term credit rating of Shuangliang Energy Efficiency Systems Co., Ltd. at AA-, and maintained the credit rating of its "Shuangliang Convertible Bond" at AA-, with a stable outlook. The rating action was taken on June 27, 2026.
In 2025, the company's total operating revenue was RMB 7.565 billion, a year-on-year decline of 43.47%. By segment, revenue from energy-saving and water-saving equipment fell slightly by 9.29% to RMB 2.723 billion, but gross margin remained stable at 27.72%, making it the main source of profit. New orders for this segment increased by 15.97% to RMB 3.521 billion, and the outstanding orders at period end were RMB 4.293 billion, providing a solid safeguard for future revenue. Revenue from new energy equipment plummeted to RMB 98 million due to a sharp reduction in polysilicon reduction furnace orders, with gross margin dropping to 14.35%. PV product revenue halved to RMB 4.420 billion due to industry oversupply and price declines, and gross margin remained negative at -10.79%, but the loss narrowed year-on-year thanks to cost reduction and efficiency improvement and an increase in processing business. The overall gross margin turned positive to 4.03% from a loss in the previous year.
Financial figures showed that total assets fell to RMB 24.391 billion and total equity to RMB 3.655 billion at the end of 2025, affected by profit losses and reduced financing. Cash and cash equivalents were only RMB 456 million, and the restricted portion of monetary funds was as high as 90.37%. Total debt declined to RMB 14.529 billion, but short-term debt accounted for 71.70%, and the asset-liability ratio and total debt-to-capitalization ratio rose to 85.01% and 79.90%, respectively, indicating high short-term repayment pressure.
However, operating cash flow improved significantly, swinging from a net outflow of RMB 1 million in 2024 to a net inflow of RMB 2.022 billion in 2025, mainly due to enhanced collection of receivables, delayed payment to suppliers by negotiation and settlement with bank acceptance bills, and active reduction of loss-making products. Financing activities remained in net outflow of RMB 1.507 billion. The company's total loss narrowed to RMB 1.264 billion from RMB 2.545 billion in the prior year.
In the first quarter of 2026, partial conversion of the convertible bond reduced total debt to RMB 11.666 billion and the asset-liability ratio to 80.67%, but the total loss was still RMB 462 million and net cash outflow from financing activities was RMB 523 million.
In terms of external support, the controlling shareholder Shuangliang Group Co., Ltd. has provided interest-free loans to the company since 2025, and along with persons acting in concert, provided financing guarantees through equity pledges, easing working capital pressure.
During the tracking period, the company was subject to an administrative penalty by the Jiangsu Bureau of the China Securities Regulatory Commission for misleading information disclosure, being ordered to correct, given a warning, and fined RMB 4 million; the responsible persons were also penalized. In addition, the company abolished the supervisory board in accordance with new regulations, with the board audit committee taking over its functions.
The "Shuangliang Convertible Bond" was issued with a size of RMB 2.6 billion, and its outstanding balance was RMB 1.401 billion as of the end of March 2026, maturing on August 8, 2029. Lianhe Ratings noted that the bond has conversion, redemption and put options, a long maturity, and a very low current default probability.