Why Is Trina Solar Letting Go of Control of the World's Second-Largest Solar Tracker Manufacturer?

On the evening of October 30, Shenzhen Nande A announced its intention to acquire a stake of no less than 51% and no more than 70% in Trina Tracker PV Racking (Jiangsu Changzhou) Co., Ltd., a subsidiary of Trina Solar.

On November 2, Trina Solar responded to a reporter from The Shell Finance, stating that the intended transaction aims to introduce a strategic partner. The company will continue to strengthen its core photovoltaic and energy storage business and focus on collaborative innovation in AI data centers (AIDC) and power systems.

Shenzhen Nande A told a reporter from The Shell Finance that the transaction is still in the planning stage and advised following future announcements.

Against the backdrop of intensifying competition in the photovoltaic industry and accelerating business restructuring by enterprises, this transaction, which is still in the planning phase, has drawn attention: Why is Trina Solar planning to divest a racking business that ranks among the top globally? What does this acquisition mean for Shenzhen Nande A, which is accelerating its deployment in the new energy sector?

In an announcement released on the evening of October 30, Shenzhen Nande A (000037.SZ) stated that it had signed a "Share Acquisition Intent Agreement" with Trina Solar (688599.SH) and its wholly owned subsidiary, Trina Solar (Changzhou) Technology Co., Ltd. ("Trina Technology"). Shenzhen Nande A intends to purchase, via cash payment, a stake of no less than 51% and no more than 70% in Trina Tracker PV Racking (Jiangsu Changzhou) Co., Ltd. ("Trina Racking"), held by Trina Technology. Upon completion of this transaction, Trina Racking will become a controlled subsidiary of Shenzhen Nande A.

On November 2, Trina Solar responded to a reporter from The Shell Finance, stating that the intended transaction aims to introduce a strategic partner to fully leverage synergies, achieve strong cooperation, and ensure mutual benefit. The company will fully utilize the strategic advantages of its integrated smart energy solutions for photovoltaics and energy storage, continue to solidify its core photovoltaic and energy storage business, and focus on collaborative innovation in AIDC and power systems.

It is understood that this matter is still in the preliminary communication stage and has not yet met the disclosure standards. Subsequent steps will require the completion of due diligence, audit and valuation, as well as internal and external approvals, and there remains uncertainty.

Founded in 2019, Trina Racking is wholly controlled by Trina Technology, with its main business being tracking racking systems. In 2025, in the comprehensive ranking of the tracking racking industry released by Wood Mackenzie, Trina Racking ranked second globally. Trina Solar executives have previously positioned the racking business as one of the key levers for the company's transformation from a module manufacturer to a provider of smart photovoltaic energy solutions. Gao Jifan, Chairman of Trina Solar, stated in a media interview during the 2025 National Two Sessions that the company has established a customer-centric and scenario-oriented business philosophy, shifting from the past supply-oriented approach to drive innovation in both hardware and software products. The company's solution products and businesses in centralized power plants, distributed power plants, energy storage, and tracking racking accounted for approximately one-third of its total revenue in 2025.

Photovoltaic racking is critical equipment used to support and secure photovoltaic modules, categorized into fixed racking and tracking racking. Trina Racking specializes in tracking racking, which can increase solar irradiance and improve power plant generation efficiency by adjusting module angles in real time. As the "skeleton" of a photovoltaic power plant, racking also plays a role in ensuring the long-term stable operation of modules, accounting for approximately 8% of the initial investment cost of ground-mounted photovoltaic systems.

In Trina Solar's annual financial reports, Trina Racking, which is categorized under the system solutions business segment, has not had its revenue scale disclosed separately. However, a tracking report on Trina Solar's convertible bonds by Lianhe Credit Rating in June this year noted that in 2025, as the Red Sea situation eased, Trina Solar's external sales of racking increased from 6.31 GW in 2024 to 7.62 GW, with sales revenue rising 25.65% year-on-year to 3.176 billion yuan. Based on a rough calculation using Trina Solar's full-year 2025 revenue of 66.975 billion yuan, the racking business accounts for less than 5 percentage points of its total revenue.

In the first three quarters of 2025, Trina Solar reported an operating revenue of 47.978 billion yuan, a slight year-on-year decline. Its net profit attributable to the parent company was -1.942 billion yuan, a significant narrowing of the loss compared to the over 4.2 billion yuan loss recorded in the same period last year.

In its third-quarter report, Trina Solar stated that the improvement in profitability was primarily driven by three factors: first, an increased proportion of orders from high-value markets, which improved the profitability of its module business; second, progress in the transformation of its energy storage and distributed energy businesses, which contributed positively to profits; and third, substantial gains from the disposal of equity stakes in certain strategic investments, along with gains from the increase in the fair value of the remaining equity stakes. In the first half of this year, Trina Solar recognized approximately 558 million yuan in investment income, primarily from the partial disposal of its shares in T1 Energy Inc. Additionally, the revaluation of the fair value of its remaining T1 Energy shares resulted in a recognized gain of 2.135 billion yuan from changes in fair value.

Shennan Electric A’s core business includes the production and sale of electricity and comprehensive energy services. Its traditional operations are centered on gas-fired power generation. Its subsidiary, Nanshan Thermal Power Plant, operates three 9E-class gas-steam combined cycle power units with a total installed capacity of 540,000 kilowatts, serving as a critical peaking power source for Shenzhen’s power load center.

In 2023, Shennan Electric A clarified its strategic direction for transformation, focusing on the new energy industry and the energy storage sector. Since then, the company has gradually expanded its new energy business by participating in new-type energy storage industry funds, deploying commercial and industrial energy storage, and developing independent energy storage stations. As of the first half of 2026, the first phase of Shennan Electric A’s Zhongshan independent energy storage station has entered the operational phase. The company is currently preparing for the construction of the second and third phases to continuously expand the scale of its energy storage business. In terms of engineering and technical services, leveraging its technical accumulation in the gas turbine power plant sector, the company has expanded its operation and maintenance services for gas turbine combined cycle power plants in Kandal Province, Cambodia. In terms of industrial investment, the company has jointly established a smart energy platform with Shandong Expressway (Shenzhen) Investment Co., Ltd. to engage in investment, operation, and management in the new energy and energy storage sectors.

Shennan Electric A categorizes the new energy and energy storage industries under its comprehensive energy services segment. Reporters from Beike Finance noted that in the first half of 2026, the revenue share of this segment exceeded 34%, a significant increase from 4.35% in 2023.

In its announcement, Shennan Electric A stated that the planned acquisition of Trina’s tracking rack business would help the company orderly expand new business segments on the foundation of its existing “gas-fired power generation + comprehensive energy services” operations, aiming to create a second growth curve. However, the company also noted that the transaction is currently in the planning stage, with no formal agreement signed by the parties involved and no transaction plan or pricing disclosed.