Zhejiang Bangjie Holding Group’s Strategic Exit from Photovoltaics: Apparel Refocus and Delisting Risks in Focus

Zhejiang Bangjie Holding Group’s abrupt exit from the photovoltaic (PV) sector and its refocus on apparel have sparked intense debate among investors. The company’s decision to terminate an 8 billion yuan PV project in Jiangshan—once a cornerstone of its expansion strategy—has left a trail of financial losses, delisting risks, and questions about the viability of its core apparel business. While the pivot to apparel aligns with its historical strengths, the magnitude of recent losses and operational instability raise critical concerns for long-term value creation.

Strategic Exit from PV: A Costly Retreat

Zhejiang Bangjie’s PV venture, launched in 2023, aimed to produce 16 GW of high-efficiency n-type solar cells and silicon wafers. However, the project was shelved in July 2025 after mounting debt pressures and production halts rendered it unsustainable [1]. The company agreed to pay 15 million yuan in compensation to the Jiangshan Economic Development Zone and abandoned land and factory facilities, signaling a complete withdrawal from the sector [2].

The financial toll has been severe. For the first half of 2025, Zhejiang Bangjie reported a net loss of 150 million yuan, with operating revenue plummeting 60.45% year-on-year to 292 million yuan [3]. The company warned that its 2025 audited net assets could turn negative, triggering delisting risk warnings after the annual report is disclosed [4]. Shareholders have further compounded uncertainty by planning to sell up to 4.4% of their combined stakes between August and November 2025, potentially exacerbating liquidity challenges [5].

Apparel Business: Mixed Signals Amid Strategic Refocus

The apparel segment, Zhejiang Bangjie’s core business since 1993, has shown uneven performance. In 2024, revenue surged 44.83% to 1.11 billion CNY, driven by growth in sports and casual wear [6]. However, this momentum reversed sharply in Q1 2025, with revenue collapsing 67.80% quarter-on-quarter to 123.05 million CNY [7]. Trailing twelve-month revenue as of March 2025 stood at 846.40 million CNY, a 18.98% decline year-on-year [8]. By June 30, 2025, TTM revenue had further contracted to $91.3 million, accompanied by a staggering -81.83% profit margin [9].

While the company emphasizes its commitment to apparel, the data suggests operational fragility. Elevated costs, reflected in a negative EBITDA of $71.82 million for the TTM period, highlight structural inefficiencies [10]. Competitors in the global seamless garment market, such as Uniqlo and Nike, have demonstrated resilience through innovation and scale—factors Zhejiang Bangjie appears to lack.

Delisting Risks and Market Sentiment

Despite a recent 25.80% year-to-date stock price gain and a 65.38% rise over the past 12 months [11], investor sentiment remains fragile. The stock traded at 4.75 yuan per share as of August 17, 2025, down 0.84% from the prior close [12], reflecting lingering doubts about the company’s financial health. Analysts at Bloomberg note that Zhejiang Bangjie’s debt-laden balance sheet and lack of clear cost-cutting measures could trigger a liquidity crisis if apparel demand fails to rebound [13].

The delisting risk, though not immediate, looms large. Regulatory filings indicate that the company’s net assets could turn negative in 2025, potentially leading to delisting proceedings [14]. Such an outcome would not only erase shareholder value but also damage the company’s credibility in capital markets.

Long-Term Viability: A Tenuous Proposition

Zhejiang Bangjie’s refocus on apparel is theoretically sound, given the sector’s alignment with its historical expertise. However, the absence of robust market share data and the apparel business’s deteriorating profitability undermine confidence in its ability to drive long-term value. The company’s recent foray into financial loans and property leasing—diversification efforts mentioned in Yahoo Finance filings—adds further complexity without addressing core operational weaknesses [15].

For investors, the key question is whether Zhejiang Bangjie can reverse its apparel business’s decline while managing debt. The company’s track record in the PV sector—marked by hasty exits and poor capital allocation—casts doubt on its strategic discipline. Without aggressive cost restructuring, innovation in product lines, or a credible path to profitability, the apparel pivot may prove insufficient to avert delisting.

Conclusion: Red Flags Outweigh Strategic Clarity

Zhejiang Bangjie’s exit from PV and refocus on apparel present a mixed investment outlook. While the company’s core business offers a theoretical foundation for recovery, the magnitude of recent losses, delisting risks, and operational inefficiencies paint a cautionary picture. Shareholders’ planned stake sales and the absence of clear turnaround measures further amplify risks. For now, the stock’s positive price action appears disconnected from fundamentals, suggesting speculative trading rather than confidence in long-term value. Investors should approach this name with caution, prioritizing risk management over optimism.

Source:
[1] Photovoltaic Business Fully Reset? Zhejiang Bangjie Holding Group Announces Termination [https://news.futunn.com/en/post/59184398/photovoltaic-business-fully-reset-zhejiang-bangjie-holding-group-announces-termination]
[2] Chinese PV Industry Brief: Zhejiang Bangjie Drops 18 GW Solar Project [https://www.pv-magazine.com/2025/07/18/chinese-pv-industry-brief-zhejiang-bangjie-scraps-plans-to-build-18-gw-solar-factory/]
[3] Bangjie Co., Ltd. (002634.SZ): Net Loss of 150 Million Yuan in the First Half of the Year [https://news.futunn.com/en/post/61315473/bangjie-co-ltd-002634-sz-net-loss-of-150-million]
[4] Photovoltaic Business Completely Halted? Zhejiang Bangjie Holding Group Announces Termination [https://www.moomoo.com/news/post/55455110/photovoltaic-business-completely-halted-zhejiang-bangjie-holding-group-announces-termination]
[5] Zhejiang Bangjie Holding Group's Shareholders To Unload Stakes [https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3TV01F:0-zhejiang-bangjie-holding-group-s-shareholders-to-unload-stakes/]
[6] Zhejiang Bangjie Holding Group Co.,Ltd (002634.SZ) Stock [https://finance.yahoo.com/quote/002634.SZ/]
[7] Zhejiang Bangjie Holding Group 2025 Company Profile [https://pitchbook.com/profiles/company/164535-76]
[8] Zhejiang Bangjie Holding Group Co.,Ltd (SHE:002634) [https://stockanalysis.com/quote/she/002634/revenue/]
[9] 002634.SZ - Zhejiang Bangjie Holding Group Co Ltd [https://www.reuters.com/markets/companies/002634.SZ/financials]
[10] Zhejiang Bangjie Holding Group Co.,Ltd Price [https://www.perplexity.ai/finance/002634.SZ]
[11] Zhejiang Bangjie Holding Group Co. Ltd. A Stock Overview [https://www.barrons.com/market-data/stocks/002634?countrycode=cn]
[12] Zhejiang Bangjie Holding GroupLtd Stock Price [https://simplywall.st/stock/szse/002634]
[13] Zhejiang Bangjie Holding Group Co.,Ltd (002634.SZ) Stock [https://finance.yahoo.com/quote/002634.SZ/]
[14] Photovoltaic Business Fully Reset? Zhejiang Bangjie ... [https://news.futunn.com/en/post/59184398/photovoltaic-business-fully-reset-zhejiang-bangjie-holding-group-announces-termination]
[15] Zhejiang Bangjie Holding Group Co.,Ltd (002634.SZ) Stock ... [https://finance.yahoo.com/quote/002634.SZ/]