Huadian New Energy subsidiary involved in "falsification" controversy: local photovoltaic operations halted, company responds

Interface News Reporter | Niu Qichang

A notice regarding a subsidiary’s “provision of false materials” has put Huaneng New Energy (600930.SH), which has been listed for only eight months, at risk of compliance issues.

Interface News learned that on March 26, the Administrative Approval Service Bureau of Rencheng District, Jining City issued a notice titled “Notice on the Suspension of Distributed Photovoltaic Record Business of Huaneng (Jinan) New Energy Co., Ltd.” (hereinafter referred to as “the notice”), clearly stating that Huaneng (Jinan) New Energy Co., Ltd. (hereinafter referred to as “Huaneng (Jinan) New Energy”) is suspended from conducting photovoltaic business locally due to providing false materials in its application for distributed photovoltaic record business.

According to the Tianyancha APP, Huaneng (Jinan) New Energy was established in January 2025 and is a wholly-owned subsidiary of Huaneng New Energy, primarily engaged in the operation of electric vehicle charging infrastructure, wind power technology services, solar power technology services, and more.

In response to the incident, a relevant person in the securities department of Huaneng New Energy told Interface News that the company had noted the situation and was still verifying the specifics. Regarding the impact of the incident on the company, the preliminary judgment is that it has not reached the disclosure standard.

Additionally, a relevant person from the Administrative Approval Bureau of Rencheng District, Jining City confirmed to Interface News that the announcement’s content is true, and Huaneng (Jinan) New Energy has been suspended from photovoltaic business in the district.

On July 16, 2025, Huaneng New Energy debuted on the Shanghai Stock Exchange with a first-day increase of 125.8%, closing with a market value approaching 300 billion yuan. This new energy platform, controlled by China Huaneng Group, became the “fundraising king” of last year’s A-shares with a fundraising amount of 18 billion yuan.

By the end of 2024, Huaneng New Energy’s total installed capacity for wind and solar power reached 68.6171 million kilowatts, with assets spread across all 31 provinces in the country. Given its vast asset scale and clear strategic layout, the market has highly recognized this state-owned enterprise new energy giant.

As of the end of last year’s third quarter, Huaneng New Energy achieved both revenue and net profit growth, with a reported operating income of 29.48 billion yuan for the first three quarters, representing an increase of 18.21%.

It is worth mentioning that Huaneng New Energy’s layout in the Shandong market is particularly dense.

From the perspective of installed capacity distribution, as of the first half of 2025, Shandong ranks third with a total installed capacity of 5.1352 million kilowatts, second only to the wind and solar resource-rich provinces of Xinjiang and Inner Mongolia; the scale of projects under construction in Shandong is approximately 2.5 million kilowatts, ranking second.

Moreover, in the 2024 fiscal year, State Grid Shandong Electric Power Company, as Huaneng New Energy’s fifth-largest customer, contributed a procurement amount of 1.844 billion yuan.

Against the backdrop of accelerated expansion in the Shandong market, this “ban” from Jining has drawn the attention of investors.

The notice indicates that the materials submitted by Huaneng (Jinan) New Energy to the Administrative Approval Service Bureau of Rencheng District for the distributed photovoltaic record business were all submitted by the entrusted agent managed by the general contractor, indicating issues of submitting false materials. The regulatory authority has decided to suspend its photovoltaic record business in the jurisdiction, with the suspension period dependent on rectification.

Interface News noted that the involved company, Huaneng (Jinan) New Energy, was established less than a year ago and has obtained more than 1,000 administrative licenses, focusing its business on the household distributed photovoltaic sector, primarily located in Linyi, Heze, and other areas. The company was responsible for the second batch of household distributed photovoltaic power generation projects of Shandong Huaneng, involving 16 prefecture-level cities in Shandong, including Jining.

Regarding the subsidiary’s alleged “fraud” incident, the aforementioned relevant person from Huaneng New Energy’s securities department previously emphasized to Interface News that the company “did not find that notice” on the official website of the relevant administrative approval bureau, and the specific situation still needs to be verified further with the subsidiary and local competent authorities. When asked if it reached the disclosure standard, the person stated, “Currently, the judgment is that it should not need to be disclosed.”

In its mid-year report for 2025, Huaneng New Energy disclosed that the company cooperates with farmers in Zhejiang, Jiangsu, Shandong, and other regions to develop household photovoltaic power stations, which are expected to increase annual income for cooperating farmers by more than 200 million yuan.

Interface News checked relevant bidding websites and noted that since May 2025, Huaneng (Jinan) New Energy has recorded multiple non-natural person household distributed photovoltaic power generation projects in several villages under Yutun Town and Liying Street in Rencheng District, Jining City, with individual installed capacities mostly between 20 kW and 50 kW.

“Household photovoltaic project record typically requires four materials: property certificate, ID card, household registration book, and bank card. Among these, the information on the ID card, household registration book, and bank card must be consistent and is hard to fake, while the property certificate is most likely to become the point of falsification,” said an anonymous person in the photovoltaic industry to Interface News, noting that in the context of rapid expansion of rural household photovoltaics, forging property certificates is not uncommon in the industry.

The aforementioned photovoltaic industry insider further expressed to Interface News that from the farmers’ perspective, if farmers indeed own a house (or have usage rights) but cannot provide legal property proof, they or intermediary agents might forge property certificates to obtain benefits for installing photovoltaics; from the company’s perspective, it is not ruled out that some companies, in order to seize resources and meet record indicators, tacitly allow or even assist in forging proof documents without proper verification.

However, he emphasized that regardless of where the issue lies, as the record subject, the involved company has the responsibility to verify the authenticity of the record materials.

Regarding the impact of this incident on the company, as of the time of publication, Huaneng New Energy has not responded.