Laplace Raises the Stakes During PV Industry Downturn, Plans RMB 2.2 Billion Private Placement to Bet on Solar and Semiconductor Equipment｜Announcement Brief

Cailian Press, June 14 — Reporter Liu Mengran: Against the backdrop of accelerated iteration in photovoltaic technology routes, which requires equipment companies to keep pace, Laplace (688726.SH) announced that it plans to raise no more than RMB 2.2 billion through a private placement, with proceeds to be used for projects including the R&D of high-end photovoltaic and semiconductor equipment.

Laplace’s main business covers photovoltaic cell manufacturing equipment, module manufacturing equipment, and supporting automation equipment, with downstream applications primarily in the photovoltaic industry. According to the proposal, the proceeds raised will be allocated to four major areas: RMB 1.25 billion for the R&D project of high-end photovoltaic and semiconductor equipment, RMB 135 million for the Phase II construction project of the Wuxi high-end photovoltaic equipment base, RMB 156 million for digitalization and intelligent upgrading, and RMB 660 million to supplement working capital. The total investment of the above projects amounts to RMB 2.216 billion.

It is worth noting that during the downturn cycle of the photovoltaic industry, it is relatively uncommon for equipment manufacturers to expand capacity through private placements. In the past two years, affected by the industry cycle, most small and medium-sized manufacturers as well as cross-industry capital players have suspended the construction of new photovoltaic production lines. The simple replication of homogeneous capacity such as traditional TOPCon and ordinary modules has largely come to an end, and the industry has entered a stage where outdated capacity is gradually being cleared out.

However, judging from the moves of leading enterprises, both TOPCon cells and XBC cells are undergoing technological iteration to achieve higher conversion efficiency, higher power output, cost reduction, and efficiency improvement. Laplace believes that, driven by goals such as the continuous improvement of photoelectric conversion efficiency, further optimization of product costs, and the achievement of grid parity for photovoltaic-plus-storage systems, the photovoltaic industry chain is placing higher demands on the continuous R&D and iteration capabilities of photovoltaic equipment companies.

To keep pace with downstream technological iteration, Laplace has maintained a relatively high inventory level. As of the end of 2025, the book value of the company’s inventory reached RMB 3.013 billion, accounting for 29.41% of its total assets for the period. Due to the characteristics of the industry, the company’s equipment acceptance cycle is relatively long, and shipped goods account for a relatively high proportion of inventory. A high level of inventory means there may be significant inventory impairment risks going forward.

During the same period, the combined book value of the company’s accounts receivable and contract assets reached RMB 2.24 billion. Against the backdrop of overall pressure on the downstream photovoltaic industry, there remains uncertainty over the collection progress of these related payments, which could further weigh on the company’s cash flow.

To hedge against the cyclical pressure of its core photovoltaic business, Laplace is also positioning its semiconductor business as a second growth curve. In the proposal, the company stated that it will conduct in-depth R&D in advanced semiconductor packaging equipment, break through core equipment technologies, and promote domestic substitution. At the same time, it aims to further enhance its digitalization and intelligent capabilities, delivery capabilities, and refined operational capabilities.

However, the semiconductor equipment industry is also characterized by high technical barriers and long validation cycles. The company stated that substantial capital investment will be required during the stages of product R&D, prototype manufacturing, and customer validation.

In terms of performance, affected by the temporary supply-demand imbalance in the photovoltaic industry chain, the company’s operating revenue has come under pressure. In 2025, the company achieved total operating revenue of RMB 5.462 billion, down 4.64% year-on-year. During the same period, total profit, net profit attributable to shareholders of the listed company, and net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses decreased by 16.86%, 14.60%, and 23.11% year-on-year, respectively.

In the first quarter of this year, the company achieved total operating revenue of RMB 968 million, down 33.31% year-on-year, while net profit attributable to the parent company was RMB 120 million, down 52.23% year-on-year. Regarding the decline in net profit, the company again stated that it was mainly affected by the temporary supply-demand imbalance in the photovoltaic industry chain.

— Cailian Press Reporter Liu Mengran