Increasing Investment in New Energy Business: Midea Plans to Fully Subscribe to Hecon New Energy's Private Placement

Economic Reference News Reporter Liu Chuan

Recently, Hekang New Energy (300048.SZ) announced a private placement plan, proposing to issue 288 million shares to targeted investors, raising no more than 1.652 billion yuan. The funds will be used for high-voltage inverter research and industrialization, photovoltaic grid-connected inverter research and industrialization, and other projects. Notably, Midea Group (000333.SZ) will subscribe in full with cash for this private placement. After the issuance, Midea Group’s stake in Hekang New Energy will increase from 18.50% to 35.08%.

Midea Group Plans to Participate in the Private Placement Again

Looking at Hekang New Energy’s specific investment projects, 439 million yuan will be invested in high-voltage inverter research and industrialization, 437 million yuan in photovoltaic grid-connected inverter research and industrialization, 292 million yuan in residential energy storage system research and industrialization, and an additional 184 million yuan in distributed photovoltaic benchmark power station construction and research. Plus, 300 million yuan will be added to working capital.

Regarding the main projects, the high-voltage inverter research and industrialization project aims to automate and digitize production lines, introduce automated assembly and intelligent testing systems, and build smart manufacturing lines to strengthen competitiveness in nuclear power, large-scale mining, high-end chemicals, and other high-end markets. The photovoltaic inverter and residential energy storage projects will leverage Midea Group’s overseas brand and channel resources to quickly build scalable production capacity and system solutions, covering residential, industrial and commercial, large ground-mounted power stations, and micro-inverter products across all scenarios.

Distributed photovoltaic is a core growth point for Hekang New Energy’s green energy business. According to the announcement, the distributed photovoltaic benchmark power station construction and research project will build about 1,000 rooftop photovoltaic stations for farmers and some factory rooftops in Anhui, Hubei, and other regions, with supporting AI smart energy operation systems. This will help the company transform from a “photovoltaic power station builder” to a “full-scenario smart energy operator.”

It is worth noting that Hekang New Energy previously announced a private placement plan on June 22, 2023. At that time, Midea Group also fully subscribed with cash, raising 1.473 billion yuan for upgrading electrical equipment capabilities, photovoltaic industry platform projects, information system upgrades, and working capital. The funds were allocated as follows: 490 million yuan for electrical equipment upgrades, 381 million yuan for photovoltaic platform projects, 48 million yuan for information system upgrades, and 554 million yuan for working capital.

While the investment fields of the two private placements are similar, the previous one ultimately did not materialize. In response, Hekang New Energy stated on investor interaction platforms that since announcing the private placement to specific targets, the company has further adjusted its business strategy, focusing on green energy solutions, residential energy storage, photovoltaic inverters, and high-voltage inverters, and has shut down or transferred non-core businesses. As the company’s operations continue to improve, its operational quality and financial situation have also been enhanced. Given the focus on core businesses, the significant changes in investment priorities, capital needs, and the market environment, the private placement plan expired automatically on February 23, 2025, under the agreed terms. This will not affect the company’s strategic implementation.

However, industry insiders pointed out to the Economic Reference News reporter that: “In August 2023, regulators optimized refinancing regulations, stipulating that the proportion of refinancing used for replenishing funds and debt repayment generally should not exceed 30% of the total raised funds. In this private placement, the funds used by Hekang New Energy to supplement liquidity accounted for 37.61%, which may be one of the key reasons why the previous private placement in 2023 did not succeed.”

Building a Second Growth Curve

On December 18, 2025, Midea Group announced a decision to reorganize part of its organizational structure and personnel, establishing a dedicated “New Energy Business Unit.” This involved restructuring the original Industrial Technology Business Unit’s new energy product companies and energy technology companies, with Wang Jianguo, Midea Group’s Executive President, appointed as the head of the new energy business unit. This appointment is widely interpreted as Midea Group’s intention to add a “new energy business” as a second growth driver outside its traditional home appliance business.

In addition to Hekang New Energy, in May 2022, Midea Group announced plans to acquire a 29.96% stake in energy storage listed company Kelu Electronic (002121.SZ) for 837 million yuan. The acquisition was completed smoothly in June 2023, making Midea the controlling shareholder, with plans to develop it into an important platform for energy management services.

In June 2025, at the SNEC exhibition (a major solar industry event jointly organized by international solar associations), Midea Group debuted under the “Midea Energy” brand, unveiling its “Storage + Heat Pump + AI” three-dimensional energy strategy, positioning the energy industry as another key pillar of the group.

Midea Group’s 2024 annual financial report shows total revenue of 409.1 billion yuan, up 9.5%. Among them, new energy and industrial technology business revenue reached 33.6 billion yuan, a 20.58% increase, growing 2.17 times faster than the overall group, making it the fastest-growing segment in ToB (business-to-business). In terms of revenue proportion, this segment accounted for 8.21% of the total in 2024, up 1.41 percentage points from 2023, surpassing 8% for the first time, marking a shift from a “marginal business” to a “key growth pole.”

Further data from the mid-2025 half-year report confirms the growth potential of the new energy business. In the first half of 2025, Midea Group’s new energy and industrial technology revenue was 21.959 billion yuan, up 28.61%, an increase of 8.03 percentage points over 2024, and significantly higher than other ToB segments. Meanwhile, the revenue share of this segment increased to 8.7%, a 0.49 percentage point rise from the end of 2024.

According to Hekang New Energy’s 2025 performance forecast, the company expects net profit attributable to shareholders of 50 million to 75 million yuan, a year-on-year increase of 385.62% to 628.43%. The main driver of this growth is the rapid expansion of photovoltaic EPC (Engineering, Procurement, and Construction) business. Kelu Electronic’s 2025 forecast shows revenue of 6 billion to 6.5 billion yuan, up nearly 35% to 47% year-on-year. The company stated that the rapid development of the energy storage industry and increasing market demand have significantly boosted project deliveries, driving revenue growth.