The RAYNEN Technology, which focuses on N-type battery cells, is the world's third-largest N-type TOPCon battery cell manufacturer and plans to go public in Hong Kong.
<h4>Key Points:</h4>
<ul>
<li>Last year's performance turned from loss to profit, with overseas gross margins higher than those in the mainland.</li>
<li>Shareholders include the National Green Fund.</li>
</ul>
Bai Xinrui
The Middle East war has triggered an energy crisis, causing oil prices to soar. Coupled with Tesla (TSLA.US) planning to procure photovoltaic equipment from China, this has stimulated the rise of the photovoltaic industry chain in the mainland. Among them, the mainland photovoltaic battery cell manufacturer Sichuan Yingfa RAYNEN Technology Co., Ltd. has taken the opportunity to submit its listing application documents.
Yingfa RAYNEN was founded in 2016 by Zhang Fayü, who started by producing electronic components. The company achieved commercial production of P-type photovoltaic PERC battery cells in 2016. After several rounds of financing to support capital expenditures, it became the world's first manufacturer to achieve commercial production of N-type xBC battery cells in August 2025, and is now the world's third-largest N-type TOPCon battery cell manufacturer. The Zhang Fayü family currently holds a 49.1% stake, and the National Green Fund, supported by the Ministry of Finance, also holds a 7.86% stake in the company.
<h4>Benefiting from Anti-Competition Policies</h4>
Benefiting from the continuous growth in electricity demand from data centers, artificial intelligence, and electric vehicles, global photovoltaic battery cell shipments have explosively increased from 208.2GW in 2021 to 694.8GW in 2025, with China providing about 85% of global photovoltaic production capacity.
Theoretically, under the &#34;dual carbon&#34; goals, photovoltaics, as a clean energy source, have high visibility in industry prospects, thus attracting a large amount of capital investment. Once capital is attracted, companies expand production capacity to seize opportunities, inadvertently planting the seeds for blind expansion. Subsequently, a large number of homogeneous products flood the market, leading to cutthroat competition, falling product prices, and dragging down corporate performance, resulting in a vicious cycle.
Last year, the mainland introduced anti-competition policies to support high-quality enterprises and shut down low-output and resource-intensive companies, causing photovoltaic product prices to stop falling and begin to rise. In particular, past photovoltaic companies mainly produced old-fashioned P-type battery cells and had not invested in the new generation of more efficient N-type battery cells. Under the anti-competition policies, many low-efficiency P-type battery cell companies went bankrupt, while companies capable of producing N-type battery cells benefited from these policies.
As for Yingfa RAYNEN, according to the listing documents, its P-type battery cells accounted for 91.9% of the company's total revenue in 2023, reaching 9.646 billion yuan, while N-type battery cells accounted for only 7.1% of total revenue (744 million yuan) in the same year. However, by 2025, this situation is expected to reverse, with P-type battery cells' share of total revenue significantly dropping to 3.6%, down to only 310 million yuan, while N-type battery cells' share of total revenue is expected to rise to 88.1%, reaching 7.676 billion yuan, with production capacity reaching 32.8GW, far exceeding the P-type battery cells' production capacity of 1.4GW
In addition, the gross profit margin of N-type battery cells is higher than that of P-type, at 17.9% and 15.4% respectively last year. Due to the higher gross profit margin, the performance in 2025 is expected to turn from a loss to a profit of 857 million yuan (compared to a loss of 864 million yuan in the same period of 2024), with revenue also soaring by 99.9% to 8.71 billion yuan.
On the other hand, the significant improvement in Yingfa Ruineng's performance is attributed to the increased development of overseas markets. In 2023, 96.7% of the group's revenue came from the mainland, with only 3.3% from overseas. However, due to intense competition in the mainland, the company is vigorously developing overseas markets, and by 2025, the mainland's share of the group's revenue is expected to drop significantly to 59.5%, while the proportion of revenue from overseas markets will increase to 40.5%.
Particularly, the gross profit margin in overseas markets is relatively high. For example, in 2025, the gross profit margin for N-type products in overseas markets is expected to reach 27.8%, which is 17.2 percentage points higher than that in the mainland. Notably, the gross profit margin in the U.S. market is 36.7%, with revenue from this market reaching 1.244 billion yuan last year, a tenfold increase year-on-year, accounting for 14.3% of the group's total revenue. Yingfa Ruineng explains that the strong performance in the U.S. business is due to the increasing application of photovoltaic products among local consumers, leading to sustained growth in customer procurement demand, as well as orders from U.S. component manufacturers.
<h4>Inventory Days Continue to Rise</h4>
However, it is worth noting that Yingfa Ruineng's inventory continues to rise, with inventory turnover days of 10 days, 47 days, and 69 days for 2023, 2024, and 2025 respectively. The group explains that the increase in raw material inventory, coupled with intense competition among downstream manufacturers, has led to an increase in finished goods inventory. Additionally, the expansion of overseas sales business, which has a longer delivery cycle compared to domestic sales, has contributed to the rise in inventory.
Furthermore, it should be noted that Yingfa Ruineng's revenue is subject to seasonal influences, especially during the Chinese Lunar New Year, which typically leads to factory shutdowns and reduced engineering activities in the first quarter. Holidays such as summer vacations and Christmas in Europe and the U.S. may also slow down overseas orders. Additionally, factors such as local projects striving for year-end grid connection before the end of the Indian fiscal year may lead to stronger sales in the first and fourth quarters, while sales may slow down in the second and third quarters due to seasonal project delays and reduced activities.
Overall, as the photovoltaic industry reaches its bottom with the implementation of anti-involution policies, Yingfa Ruineng is not only expected to benefit but also plans to expand its overseas business with higher gross profit margins. Referring to First Solar (FSLR), which is listed in the U.S. and is expected to have a price-to-earnings ratio of about 12 this year, if Yingfa Ruineng offers shares at a price-to-earnings ratio below 10, it is believed that it will attract considerable investor subscriptions

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四川英发睿能科技股份有限公司

The photovoltaic cell manufacturer Sichuan Yingfa RAYNEN Technology Co., Ltd. plans to go public in Hong Kong, focusing on N-type cells. Last year, the company turned a profit, with shareholders including the National Green Fund. Benefiting from the global growth in photovoltaic demand and anti-involution policies, Yingfa RAYNEN holds an advantage in the market. The company's P-type cells accounted for 91.9% of total revenue in 2023

The National Green Fund supports Yingfa RAYNEN's plan for listing in the photovoltaic sector