According to an announcement on January 6 by the official WeChat account of the Hefei Bankruptcy Administrators Association, the “Investor Recruitment Notice for the Bankruptcy Reorganization Case of Hefei RongAn Power Machinery” has been released, marking a significant development in the bankruptcy reorganization case of Hefei RongAn Power Machinery (RongAn Power).
According to the announcement, on December 12, 2025, the Hefei Intermediate People’s Court issued a ruling accepting the bankruptcy reorganization application filed by creditors against RongAn Power and appointed Anhui Chengyi Law Firm as the administrator.
To safeguard the preservation and appreciation of the debtor’s assets, enhance the repayment ratio for creditors, and maximize the protection of the lawful rights and interests of all relevant parties, the administrator of RongAn Power hereby publicly solicits prospective investors. Interested restructuring investors must submit their application materials by 5:00 PM on February 28, 2026. The administrator reserves the right, based on the recruitment situation and subject to approval by the Hefei Intermediate People’s Court, to extend the application period or initiate a new recruitment process.
According to preliminary assessment results and the administrator’s investigation, RongAn Power’s audited total assets are approximately 4.227 billion yuan (approximately US$605 million), total liabilities are approximately 7.117 billion yuan (approximately US$1.019 billion), and net assets are approximately 2.89 billion yuan (approximately US$414 million). The debt-to-equity ratio is approximately 168.39%. The total assessed value of RongAn Power’s assets is approximately 2.338 billion yuan (US$335 million, the final audited and assessed figures are subject to confirmation). As of now, the total liabilities, including declared claims and those verified by the administrator, preliminarily amount to approximately 7.913 billion yuan (approximately US$1.133 billion).
The announcement states that RongAn Power’s bankruptcy reorganization possesses three inherent advantages:
Firstly, the core assets have considerable value: According to the assessment results, the preliminary estimated value of RongAn Power’s core assets (land, real estate, and machinery equipment) is 2.338 billion yuan (approximately US$335 million). The large scale of these assets gives them significant restructuring and market value. In particular, the large number of imported high-end CNC machine tools, if successfully utilized after restructuring, will create powerful production capabilities.
Second, a comprehensive production system and locational advantages: RongAn Power possesses complete land, factory buildings, production lines, and a skilled workforce. Located in the Hefei Economic and Technological Development Zone, it is adjacent to the Paihe Waterway of the Jianghuai Canal, offering readily accessible transportation resources. With well-developed infrastructure, the company has the hardware foundation to rapidly restore and enhance production capacity following capital infusion.
Third, industry transformation presents opportunities: The global shipping sector’s push for emissions reduction is accelerating vessel upgrades, creating urgent demand for green propulsion systems. As a seasoned engine manufacturer, RongAn Power possesses deep technical expertise and industry experience, positioning it to develop and produce low-carbon and zero-carbon engines for this transition. By attracting investors with complementary technical and market resources, the company stands to capitalize on this transformative industry shift.
According to business registration information, RongAn Power was established on August 15, 2007, with a registered capital of 1.2323 billion yuan (approximately US$176 million), and its business license is valid until August 15, 2047. Based on business registration information and company-provided documents, as of the valuation date, the equity structure of RongAn Power is as follows: Hefei Rongan Heavy Machinery holds 100% of the equity in RongAn Power (with a capital contribution of 1.2323 billion yuan). Currently, Rong’an Power has no external long-term equity investments.
According to its official website, RongAn Power is a large-scale equipment manufacturing enterprise primarily engaged in the production of marine diesel engines. According to its development plan, RongAn Power plans to start with low-speed diesel engine projects, integrating eight major products including medium- and low-speed diesel engines, propellers, and marine shaft systems, to provide comprehensive solutions for marine power systems.
The Phase I Marine Low-Speed Diesel Engine Project of RongAn Power was listed as a key project under Anhui Province’s “861 Plan” and Hefei City’s “121 Project”. Approved by the National Development and Reform Commission (NDRC) on March 6, 2009, it made RongAn Power the first private enterprise in China to obtain NDRC approval for the production of marine low-speed diesel engines.
RongAn Power has successively signed production license agreements with two of the world’s leading diesel engine design and manufacturing companies, WARTSILA and Everllence (formerly MAN Energy Solutions), to produce low-speed diesel engines with cylinder diameters ranging from 350 to 980 mm. The first RONGAN-WARTSILA 6RT-flex68D diesel engine produced by the company, which was exported to Brazil, was successfully delivered on October 22, 2009; in June 2010, RongAn Power successfully delivered and tested China’s first 7RT-flex82T diesel engine.