On March 6, Bangjie Shares (SZ002634, stock price 7.13 yuan, market value 3.275 billion yuan) announced that it had received a "Civil Mediation Letter" from the People's Court of Yangzhou Economic and Technological Development Zone.
The "Daily Economic News" reporter noted that this marks the settlement of the 140 million yuan subsidy refund dispute between Bangjie Co., Ltd. and the Yangzhou Economic and Technological Development Zone Management Committee (hereinafter referred to as the "Development Zone Management Committee").
Previously, the Yangzhou 10GW high-efficiency photovoltaic cell project in which Bangjie invested heavily continued to suffer losses and ceased production in March 2025. Due to the delay in resuming work and production as planned, the Development Zone Management Committee took Bangjie Co., Ltd. and its subsidiaries to court to recover the huge equipment subsidies paid in advance.
Photovoltaic project shutdown causes disputes
The starting point of Bangjie Co., Ltd. was full of ambitions.
In order to promote the strategic development of listed companies and form a business structure with dual main businesses of "seamless clothing + photovoltaics", Bangjie Co., Ltd. decided to enter the photovoltaic industry in a big way at the end of 2022. In December 2022, the board of directors of Bangjie Co., Ltd. reviewed and approved the proposal and agreed to sign the "High-efficiency Photovoltaic Cell Project Investment Agreement" with the Yangzhou Economic and Technological Development Zone Management Committee.
According to the above-mentioned agreement, Bangjie Co., Ltd. plans to invest a total investment of approximately 2.6 billion yuan (of which equipment investment is approximately 1.6 billion yuan) to build a high-efficiency photovoltaic cell project with an annual output of 10GW in Yangzhou. To this end, the company invested 500 million yuan in Yangzhou to establish a secondary subsidiary Yangzhou Bangjie New Energy Technology Co., Ltd. (hereinafter referred to as "Yangzhou Bangjie") as the specific implementation entity of the project.
In order to attract the implementation of this major project, the Development Zone Management Committee promised to set up a project service team to provide full-process services and provide relevant support policies to the project company as agreed in the agreement. Bangjie Co., Ltd. promises that the project company will last for no less than 10 years and reduce energy consumption as much as possible.
In September 2023, Bangjie Co., Ltd. announced that its Yangzhou high-efficiency photovoltaic cell project with an annual output of 10GW successfully rolled off the first piece and gradually put it into production. It seems that everything is developing in the expected direction.
However, as competition in the photovoltaic industry intensified and product prices dropped sharply, Yangzhou Bangjie faced major adverse changes in the external operating environment. It has continued to suffer losses since it was put into production, and its operations are far from reaching its predetermined goals. Financial data shows that Yangzhou Bangjie’s net profit in 2023 was -160 million yuan; in the first three quarters of 2024, its losses further expanded, and its net profit plummeted to -275 million yuan.
Under tremendous operating pressure, Yangzhou Bangjie had to step on the "sudden brake" in order to reduce losses and protect the company's interests.
Starting from March 1, 2025, Yangzhou Bangjie will implement a temporary shutdown of its high-efficiency photovoltaic solar cell production line and conduct a comprehensive and large-scale overhaul of core production equipment. It was originally expected that the production suspension would last no more than three months, but after a comprehensive assessment of preparations for resumption of production, the company finally decided to continue to suspend production in order not to expand its loss exposure and not bear additional risks.
It was Yangzhou Bangjie's "suspension of work and production" that triggered the contract dispute with the Development Zone Management Committee.
According to the announcement of Bangjie Shares, the Development Zone Management Committee successively paid relevant subsidies totaling 140 million yuan to Yangzhou Bangjie through the Xinyang Investment Promotion Service Center of the Yangzhou Economic and Technological Development Zone from November 2023 to April 2024.
Seeing that the project company not only failed to resume work and production as planned, but also failed to return subsidies, the Development Zone Management Committee filed a lawsuit with the Yangzhou Economic and Technological Development Zone People's Court in early 2026.
Agree to return 140 million yuan in subsidies
The Development Zone Management Committee not only requested that Bangjie Shares and Yangzhou Bangjie jointly and severally return the principal of 140 million yuan, but also requested compensation for corresponding interest losses (provisionally estimated to be approximately 6.6832 million yuan as of January 11, 2026), with the total principal and interest reaching more than 146 million yuan.
At the same time, as of January 19, 2026, a large number of bank accounts of Bangjie shares and subsidiaries have been frozen due to various lawsuits; in addition, the equity of many core subsidiaries, including Yangzhou Bangjie, has been frozen or waiting to be frozen by creditors.
In the end, Bangjie Shares chose to reconcile with the Development Zone Management Committee to stop the loss.
At the first extraordinary shareholders meeting in 2026 in March this year, Bangjie Shares reviewed and approved the "Proposal on Signing with the Yangzhou Economic and Technological Development Zone Management Committee." Bangjie Shares and Yangzhou Bangjie agreed to reach a mediation agreement with the Development Zone Management Committee under the auspices of the Yangzhou Economic Development Zone Court and conclude the case with a mediation letter issued by the court.
Recently, Bangjie Co., Ltd. and Yangzhou Bangjie officially received the "Civil Mediation Letter" from the Yangzhou Economic Development Zone Court, which also means that the subsidy return case of up to 140 million yuan has been completely settled at the legal level.
According to the contents of the Civil Mediation Letter confirmed by the court, the parties reached several core consensuses through consultation.
First of all, Yangzhou Bangjie has fully confirmed the 140 million yuan in due subsidy debt that has been paid by the Development Zone Management Committee. The mediation letter clearly stipulates that the 140 million yuan debt will be distributed by the Development Zone Management Committee "in accordance with the bankruptcy procedures and legal declaration of claims."
Secondly, for this huge debt, the mediation letter clarified that Bangjie Co., Ltd., as a jointly and severally responsible party, must assume substantial repayment obligations and should return 140 million yuan in full to the Development Zone Management Committee before September 30, 2026.
Third, regarding the litigation costs of the case, the acceptance fee for this case will be halved and will be borne by Yangzhou Bangjie and Bangjie Co., Ltd. jointly.
Finally, the "Civil Mediation Letter" confirms that after the mediation agreement takes effect, the rights, obligations and contract disputes arising from the relevant investment agreement between the Development Zone Management Committee and Bangjie Holdings (excluding Yangzhou Bangjie) based on the relevant investment agreement on December 9, 2022 will be concluded.
Regarding the financial shock caused by the settlement of this major lawsuit, Bangjie Co., Ltd. frankly stated in the announcement that the specific impact of this lawsuit on the company's current or subsequent profits needs to be determined based on the final performance of the mediation letter. The relevant accounting treatment and financial data will be subject to the results of the annual audit confirmation by the audit agency.
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