A grand blueprint inspires progress, and technological self-reliance carries the weight of our times. The 15th Five-Year Plan proposal clearly states that we should "accelerate high-level technological self-reliance and lead the development of new productive forces," placing technological innovation in a crucial position in the overall national development strategy.
China CITIC Financial Asset Management resolutely implements the decisions and plans of the Party Central Committee, focusing its efforts on supporting key links in the industrial and supply chains and the development of leading enterprises in the science and technology finance sector. Through comprehensive financial means such as "equity + debt" and "restructuring + relief," it accurately addresses the financing needs of technology companies, demonstrating its responsibility to serve national strategies through concrete actions of "finance towards the real economy and capital towards science and technology."
Focusing on "hard technology"
Counter-cyclical layout of core links in the industrial chain
Headquartered in Zhejiang, Hoshine Silicon Industry is a global leader in the field of silicon-based new materials. With its unique integrated coal-power-silicon industrial chain, its industrial silicon and organosilicon monomer production capacity has ranked first in the world for many years.
During an interview, a Financial Times reporter learned that when companies face challenges, CITIC Financial Asset Management's Zhejiang branch and Asset Management Department I quickly assembled an elite team, traveling thousands of miles to the Xinjiang Gobi production base to delve into the front lines and accurately assess the company's core value. Focusing on the company's core competency—industrial silicon—the team successfully streamlined the company and reduced its leverage by increasing capital in its core subsidiary and implementing a comprehensive bailout plan. Deeply involved in corporate governance, the team helped the company strengthen its internal capabilities and further solidify its global cost competitiveness.
Tongwei Group, the world's largest polysilicon producer headquartered in Sichuan, is facing the challenges of an industry cycle. CITIC Financial Asset Management's Asset Management Department I, in conjunction with CITIC Financial Asset Management's Sichuan branch, is increasing the capital of Tongwei's core subsidiary through a market-oriented debt-to-equity swap. The funds will be used to issue shares and repay debt, helping the company to operate with a lighter burden and move forward steadily.
Professionalism Reshapes Value
Comprehensive measures to consolidate the core competitiveness of enterprises
A representative from CITIC Financial Asset Management stated that in serving the aforementioned companies, CITIC Financial Asset Management fully leveraged its counter-cyclical adjustment and comprehensive financial advantages, providing not only financial support but also injecting all-round value—combining management, mechanisms, and confidence—through deep involvement. Addressing the different asset characteristics and stage-specific difficulties of each company, CITIC Financial Asset Management flexibly utilized a combination of various financial instruments, including asset restructuring, debt restructuring, and management restructuring; capital increase and debt repayment, and governance empowerment; and equity conversion options, along with cash repurchase, while designing tiered exit paths and return protection mechanisms to achieve value reconstruction under controllable risks.
Both projects precisely targeted the core pain points of enterprises, namely, difficulty in financing and high debt. Through systematic measures such as deleveraging, improved governance, and strengthening core businesses, they helped enterprises solidify their operational foundation and accumulate new growth momentum during the industry downturn. With the effective easing of financial pressure, both companies were able to invest more resources in technological research and development and process upgrades. Hoshine Silicon Industry, relying on continuous process optimization and energy management system innovation in the industrial silicon field, achieved a significant increase in average daily output and a substantial decrease in overall power consumption. The daily output of some production lines exceeded 70 tons per furnace, and the unit smelting power consumption was controlled below 10,000 kWh. Tongwei Group achieved multiple technological breakthroughs in cutting-edge fields such as polysilicon HJT, xBC, and perovskite. Its mass-produced module power reached 778.5W, approximately 60W higher than the mainstream power of the same type on the market. The risk of microcracks in cells decreased by 30%, the bifaciality of products increased to 85%, and product reliability reached the top level in the industry. Against the backdrop of overall pressure on the upstream of the photovoltaic industry, the two companies, with the comprehensive financial support of CITIC Financial Assets, not only stabilized their situation but also achieved technological breakthroughs and increased profits, making their competitiveness on the global silicon-based materials stage increasingly solid.
Fulfilling the financial mission
Activate the cycle of technology, industry, and finance
Based on the principle of "meeting national needs and leveraging CITIC's capabilities," CITIC Financial Asset Management accurately identifies the real needs of technology companies during the transition between old and new growth drivers and industry cycle fluctuations. It provides comprehensive financial solutions that are both commercially sustainable and policy-oriented, effectively promoting a high-level cycle of technology, industry, and finance. This has not only strongly supported the steady development of my country's strategic silicon-based materials industry and enhanced the industry chain's self-reliance and controllability, but also explored a feasible path to support hard-tech companies in navigating economic cycles and achieving high-quality development through comprehensive financial means, demonstrating the unique function and value of financial asset management companies in serving the real economy.
A representative from CITIC Financial Asset Management stated that, with a firm commitment to the "15th Five-Year Plan," CITIC Financial Asset Management will demonstrate greater responsibility and achieve greater success in serving the nation's journey toward becoming a science and technology powerhouse, contributing CITIC's strength to helping achieve high-level scientific and technological self-reliance and the vigorous development of new productive forces.
