Yangzijiang Financial Holding and two other investors are aiming to control 23.36% of Ningbo Shanshan Co, a listed producer of lithium battery anode materials, which is undergoing restructuring.
The investment will be via two phases.
First, Yangzijiang Financial Holding and investors Xiamen TCL Industrial Investment Co and China Orient Asset Management Co will set up an investment platform to acquire 223.3 million Shanshan Co shares at RMB 11.44 per share from Shanshan Group and its wholly owned subsidiary, Ningbo Pengze.
This corresponds to 9.93% of Shanshan Co’s total share capital.
Of this, Yangzijiang Financial Holding will contribute RMB 1.02 billion and hold a 40% interest in the investment platform.
In addition, Xiamen TCL Industrial Investment Co will separately acquire 43.7 million Shanshan Co shares, or 1.94%, with the voting rights of these shares entrusted to the investment platform.
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In the second phase, a limited partnership will be established with a service trust managed by China Orient Asset Management Co as a limited partner.
This partnership will acquire 20 million shares of Shanshan Co, or 0.89%, and the voting rights of these shares will be entrusted to the platform.
In addition, the voting rights of the sellers’ remaining retained shares will also be entrusted to the platform.
Upon completion of all phases, the co-investors will collectively hold effective voting rights representing approximately 23.36% of Shanshan Co, to be exercised by Yangzijiang Financial, in its capacity as the general partner of the platform.
Yangzijiang Financial Holding's investment of RMB 1.02 billion represents around 4.79% of its NAV as at 30 June 2025 and 4.51% of its market capitalisation as at October 1.
Yangzijiang Financial Holding says the investment agreement is subject to the approval of Shanshan Co's creditors and the Ningbo Intermediate People’s Court.
The completion timeline of the reorganisation and the final shareholding structure are subject to changes.
According to Yangzijiang Financial Holding, lithium battery anode materials produced by Shanshan Co are widely used in the new energy, battery and electric vehicle industries.
Yangzijiang Financial Holding, claiming expertise in corporate reorganisation and industry knowledge of its co-investors, says that the investment can help stabilise Shanshan Co’s ownership structure and support its long-term development through funding, operational experience and business networks.
Shanshan Co will continue to focus on its two core businesses, lithium battery anode materials and polarizers, thereby reinforcing its role in the new energy and display industries.
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“This equity investment represents a strategic move to capitalise on the gradual recovery of China's economy by deploying the group’s robust cash reserves into high-quality investment opportunities," says Yangzijiang Financial Holding's executive chairman and CEO Ren Yuanlin.
"It aligns well with our investment philosophy of supporting companies with solid business fundamentals, established market presence, and strong industry partnerships, but require fresh capital to unlock growth or navigate restructuring, an area where we have proven expertise," he says.
Ren says Yangzijiang Financial Holding is actively pursuing promising opportunities that strengthen its core investment portfolio and aims to effectively deploy its cash reserves to generate sustainable returns to shareholders.
Yangzijiang Financial Holding's shares closed at $1.18, down 1.67% for the day but up 187.8% year to date.
