Canadian Solar Replaces President: Founder's Spouse Zhang Hanbing Takes Over, Former President Zhuang Yan Moves to Residential Storage Subsidiary

Source: Titanium Media Author: Foresight Energy

On September 19, Atotech announced a change in its presidency. Former President Zhuang Yan resigned from his positions as director and president, citing retirement age and personal arrangements. He will be succeeded by Zhang Hanbing, 68, a Canadian citizen and the wife of co-founder and Chairman Qu Xiaohua.

A Strategic Shift Amid Industry Turmoil

The first half of 2026 has been brutal for the photovoltaic (PV) industry. Module prices have fallen below RMB 0.7/W, and 5,089 PV-related companies nationwide have been deregistered—an average of 28 per day disappearing from business registries. In this bloodbath, Atotech managed to report a net profit attributable to shareholders of RMB 300 million, making it one of the few profitable companies in the main supply chain.

This leadership change, therefore, is no routine handover. It brings to the forefront two strategic moves Atotech is making at the bottom of the industry cycle: further concentration of power within the founding family, and the elevation of its energy storage business from a "second growth curve" to a "main force." Zhuang Yan's next role serves as the clearest footnote to this strategic pivot.

Zhuang Yan Stays Close: Heads to Residential Storage Subsidiary

According to Atotech's announcement, Zhuang Yan's retirement is due to age. However, he has not truly retired. After stepping down as group director and president, he has been appointed Chairman and legal representative of Shenzhen Wenchuang Innovation Technology Co., Ltd., a subsidiary established in 2021 that focuses on residential energy storage. Its products are already sold in markets including the United States, the United Kingdom, Germany, Spain, and Italy.

Placing a former group president at the helm of a subsidiary signals a significant increase in the weight of residential storage within Atotech's internal structure. In the first half of 2026, Atotech's energy storage system product revenue reached RMB 5.659 billion, surpassing PV module revenue of RMB 3.793 billion to become the company's largest revenue source. Energy storage shipments totaled 6.1 GWh, a 103.3% year-on-year increase. As of May 8, 2026, the company's energy storage order backlog stood at USD 3.5 billion, covering North America, Europe, Australia, and Latin America. Atotech's full-year energy storage shipment guidance is 14–17 GWh, nearly double the 7.8 GWh shipped in 2025.

Zhuang Yan's assignment to residential storage indicates that Atotech is not content with large-scale storage alone. In the first half of 2026, global residential storage shipments reached 39.07 GWh, up 137.67% year-on-year, compared to an overall global energy storage system shipment growth rate of 83.45% (with large-scale storage growing at 79.60%). Atotech aims to make residential storage its next profit pillar, hence deploying a veteran leader to oversee it.

Storage Revenue Exceeds Modules, but Core Operations Still Loss-Making

Atotech's strategic shift began earlier. In the first half of 2026, the company's total revenue was RMB 12.784 billion, down 39.27% year-on-year; net profit attributable to shareholders was RMB 300 million, down 59.02% year-on-year. Module revenue plummeted 73.59% to just RMB 3.793 billion. The company actively reduced module shipments to approximately 3.9 GW—a fraction of its peers' volumes—in exchange for a positive bottom line.

However, the quality of that profit requires closer examination. The net profit excluding non-recurring items (core operating profit) was -RMB 253 million for the first half, and -RMB 596 million for the second quarter alone. Non-recurring items contributed significantly to the RMB 300 million net profit figure.

Excluding these items, Atotech's core business remains under pressure. Unit profitability in energy storage is also being squeezed: in Q2, it was approximately RMB 0.10–0.11/Wh, down RMB 0.07–0.08/Wh quarter-on-quarter, driven by rising lithium carbonate prices and the transfer of U.S. shipments to a joint venture. Net exchange losses totaled RMB 409 million in the first half, an increase of RMB 649 million compared to the same period last year, significantly eroding profits.

For comparison, Trina Solar shipped over 5 GWh of energy storage in the first half, up 188% year-on-year, with a gross margin of 21%. JinkoSolar delivered 3.1 GWh, up approximately 106% year-on-year, with a gross margin of about 15%. While Atotech leads in shipment volume, its gross margin is not superior. Volume is growing, but the profit equation has yet to balance.

Ceding Control in the U.S. Market for a Ticket to Stay

Atotech's overseas revenue has long exceeded 70% of total revenue, rising further to 91.58% in the first half of 2026. The importance of the U.S. market to the company is clear. However, the FEOC (Foreign Entity of Concern) restrictions under the U.S. "Inflation Reduction Act" present Chinese PV companies with a choice: either exit the U.S. market or cede control to gain compliance.

Atotech chose the latter. The listed company and its controlling shareholder, CSIQ, established new joint ventures, with Atotech retaining only a 24.9% stake and CSIQ holding 75.1%. PV and energy storage assets were placed into separate joint venture entities. Post-restructuring, the A-share listed company focuses on global markets excluding the U.S., while CSIQ focuses on the U.S. domestic market. The two entities operate independently in bidding, customer resources, and sales channels.

The cleverness of this structure lies in CSIQ being a Canadian-registered, U.S.-listed company—legally a North American entity not subject to FEOC ownership restrictions—making it eligible for the U.S. 45X manufacturing tax credit. Atotech retains a channel to share in U.S. market profits through its 24.9% equity stake. The company's 5 GW U.S. module factory is already at full capacity, a 2 GW cell facility began production in July, and a second-phase 5 GW module line is under rapid expansion.

However, the listed company has relinquished operational control over its U.S. business. Future profit sharing depends on the joint venture's performance and the controlling shareholder's business decisions. A minority stake means minority influence. This is the price Atotech pays to remain in the U.S. market. Additionally, effective April 1, 2026, the VAT export rebate for PV products—covering 249 items including wafers, modules, and inverters—was officially abolished. For a company with over 90% overseas revenue, every module exported now carries an additional cost.

Atotech's "Thrifty" Culture: A Moat in Downturn

Atotech is known in the industry as the "most frugal" PV leader. While peers spend heavily on branding and market expansion, this Suzhou-based company is famously cost-conscious. Internal operations are also lean. According to industry sources, Atotech previously avoided having out-of-town employees stay in hotels near domestic trade shows, instead chartering buses for same-day round trips to save on accommodation costs. While this may have compromised employee rest, it clearly illustrates the company's deeply ingrained cost-control culture.

In a sense, this extreme cost discipline has become a moat during the industry downturn. In the first half of 2026, 11 out of 13 major PV companies reported losses; Atotech remained profitable. However, cost control and risk control are two different things. The company's debt-to-asset ratio stood at 62.07% in the first half, with financial expenses of RMB 540 million, and operating cash flow pressure is notable. Dongwu Securities forecasts Atotech's net profit attributable to shareholders for 2026–2028 at RMB 1.72 billion, RMB 3.36 billion, and RMB 4.58 billion, respectively, corresponding to a 2027 P/E ratio of approximately 11x. These projections assume sustained high growth in energy storage shipments, smooth operations of the U.S. joint venture platform, and no further deterioration in industry price wars. If any of these three conditions falters, the financials will need to be recalculated.

Conclusion

With Zhang Hanbing assuming the presidency and Zhuang Yan moving to residential storage, Atotech has completed a dual restructuring of power and strategy at the bottom of the industry cycle. The PV sector is shifting from price competition and capacity expansion to competition in technology, quality, differentiation, and diversification. Atotech has survived the toughest six months in the most frugal way possible. But how far a company's survival philosophy can take it ultimately depends on its ability to find the balance between saving money and making money.

Full text of Atotech's announcement: (Source: Titanium Media)