A listed company’s cross-industry transformation history is also a microcosm of China’s industrial changes.On September 22, Sunflower (300111.SZ) resumed trading and hit a 20% daily limit up. This company, once a photovoltaic enterprise and now a pharmaceutical company, has announced its entry into the semiconductor field, planning to acquire 100% equity of Xipu Materials.This marks Sunflower’s fourth cross-industry attempt. From photovoltaics to pharmaceuticals, and now to semiconductors, each transformation has aligned with the hot tracks of different periods.
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Four Cross-Industry Attempts: The Transformation JourneySunflower’s transformation journey has been quite tumultuous.Founded in 2005 as “Zhejiang Sunflower Solar Energy,” the company went public on the Growth Enterprise Market in 2010, focusing on crystalline silicon solar cells and modules. Due to the impact of anti-dumping measures in Europe and the U.S. and the decline of subsidies, the industry entered a winter starting in 2018, leading to consecutive losses for the company, which decided to “escape” from photovoltaics.
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First Cross-Industry Attempt: Photovoltaics to Pharmaceuticals (2019)In 2019, through a major asset restructuring, the company invested 350 million yuan to acquire 60% equity of Beid Pharmaceutical, while completely selling its photovoltaic assets, including Sunlight Electric and Juhui New Energy, thus exiting the photovoltaic sector. In February 2020, it was renamed “Sunflower Health” and officially announced its main business focus on anti-infection and cardiovascular raw materials and formulations.
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Second Cross-Industry Attempt: Pharmaceuticals to Photovoltaics (2023, Unsuccessful)In 2023, with the booming TOPCon solar cells, the company announced an investment of 1.5 billion yuan to build a 5 GW TOPCon cell production line in Shaoxing, Zhejiang, attempting to “return home.” However, with only 240 million yuan in cash, the stock exchange issued multiple inquiries regarding the source of funds, and the project ultimately came to nothing.
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Third Cross-Industry Attempt: Pharmaceuticals to Metal-Based Ceramics (2024, Unsuccessful)In 2024, the company announced plans to invest in metal-based ceramic materials, claimed to be used for semiconductor equipment components, but voluntarily terminated the project due to “key technical indicators not meeting standards.”
4. Fourth Cross-Industry Attempt: Pharmaceuticals to Semiconductor Materials (2025, Ongoing)In September 2025, the company disclosed a major asset restructuring plan:
Sunflower’s “cross-industry history” is a story of continuous divestment, acquisition, and re-transformation, having attempted to change tracks four times in just over a decade, making it one of the most active cross-industry companies in A-shares.
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This Transaction: A Dual-Line StrategyIn the transaction plan disclosed on September 21, Sunflower intends to purchase 100% equity of Xipu Materials and 40% equity of Beid Pharmaceutical through a combination of issuing shares and cash.This is a strategic layout of “pharmaceuticals + semiconductors” running in parallel. After the transaction is completed, Sunflower will fully control Beid Pharmaceutical while entering the high-end semiconductor materials field.Beid Pharmaceutical is currently a subsidiary of Sunflower (holding 60%) and mainly engages in the research and production of anti-infection and cardiovascular drugs. In 2024, Beid Pharmaceutical’s revenue was 330 million yuan, with a net profit of 13.8688 million yuan.The other target, Xipu Materials, was established in November 2020 and focuses on high-purity electronic special gases and silicon-based precursors, among other high-end semiconductor materials.
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Performance Under Pressure, Seeking BreakthroughsSunflower’s urgent need for transformation is driven by the continuous pressure on its performance.In 2024, the company reported a revenue of 330 million yuan and a net profit attributable to the parent company of 7.8273 million yuan. In the first half of 2025, revenue fell by 8.33% year-on-year to 144 million yuan, and net profit attributable to the parent company dropped by 35.68% to 1.1607 million yuan.The company stated that the decline in performance in the first half of the year was mainly due to a significant drop in sales of certain anti-infection products (especially azithromycin formulations).Although Beid Pharmaceutical has remained profitable, both revenue and net profit declined in the first half of 2025, indicating a significant reduction in growth momentum.
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How Strong is the Semiconductor Target?Xipu Materials, as a rising star in the semiconductor industry, has shown strong growth potential. In 2023 and 2024, the company’s revenue was 38.5418 million yuan and 98.5440 million yuan, respectively; net profits were 40.8 thousand yuan and 1.37652 million yuan, with a revenue growth of over 250% year-on-year in 2024, indicating that its performance is entering an explosive phase.The core products of Xipu Materials include semiconductor-grade high-purity electronic special gases, silicon-based precursors, and metal-based precursors, which are widely used in key processes such as diffusion, etching, and thin-film deposition in semiconductor manufacturing.Many of the company’s key products have been certified by several well-known wafer fabs both domestically and internationally, making it a core supplier. Xipu Materials has received investments from venture capital funds such as Sequoia Capital and Jinhui Zhiyuan Capital, which to some extent proves its technological value and market potential.
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Transaction Plan: Low-Price Issuance Attracts AttentionIn the disclosed transaction plan, Sunflower intends to purchase 100% equity of Zhangzhou Xipu Materials Technology Co., Ltd. held by Shanghai Xipu Technology Co., Ltd. and five other parties, as well as 40% equity of Beid Pharmaceutical held by Shaoxing Sunflower Investment Co., Ltd.After the transaction is completed, Sunflower will achieve full control over both Xipu Materials and Beid Pharmaceutical.The company has set the issuance price at 2.93 yuan per share, which is not less than 80% of the average trading price of the company’s stock over the 120 trading days prior to the pricing benchmark date. This price represents a 40.93% discount compared to the closing price of 4.96 yuan on the last trading day before the suspension (September 5), and a 50.76% discount compared to the limit-up price after resuming trading on September 22.Shanghai Xipu, Liangsheng Xipu, Ruihui Xipu, and Sunflower Investment have a lock-up period of 36 months, while the other transaction parties have a lock-up period of 12 months.Additionally, the company plans to issue shares to no more than 35 specific investors to raise matching funds for the cash consideration and related expenses of this transaction. The issuance price will not be less than 80% of the average stock price over the 20 trading days prior to the fundraising pricing benchmark date.The most noteworthy aspect of this transaction is the issuance price of 2.93 yuan per share, which is a 40.93% discount compared to the closing price before the suspension and a 50.76% discount compared to the limit-up price after resuming trading.In the seven trading days before the suspension, the company’s stock price rose nearly 30%, with a peak increase of 11.96% on September 5, raising concerns among some investors about potential information leaks.Regarding this pricing, Sunflower stated, “This is the price negotiated between both parties.” While the low-price issuance is beneficial for the transaction’s completion, it may also dilute the rights of existing shareholders.However, this cross-industry transformation faces numerous challenges and risks. Sunflower’s attempt to enter the semiconductor materials sector can be seen as a “big gamble.” Success would bring a second growth curve; failure could lead to deeper troubles.Looking back at Sunflower’s transformation journey: from photovoltaics to pharmaceuticals, and now to semiconductors, each time it has pursued popular tracks. However, cross-industry transformation is not easy; it requires technological accumulation, talent reserves, and resource investment.Although the semiconductor materials industry has broad prospects, it has high technical barriers and long customer certification cycles. Sunflower lacks relevant experience, and whether it can successfully integrate Xipu Materials remains to be seen.
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