Along with the rapid development of EVs in China, Ningbo Shanshan has received strategic support of up to CNY 30 billion from BYD, CATL, and CNPC Capital, to expand its core business of lithium battery and anode materials.
On April 19, Ningbo Shanshan (杉杉股份) disclosed that it joined with CATL, BYD, and others to increase capital to buttress its holding subsidiary for the expansion of the new energy battery and anode material business. The subsidiary mainly engaged in the research and development, production, and sales of anode materials for lithium-ion batteries and their carbon materials.
The total capital increase was CNY 3.05 billion, and the newly registered capital of Ningbo Shanshan reached CNY 350 million. In 2021, the company's subsidiary achieved revenue of CNY 4.181 billion and a net profit of CNY 601 million. In this capital increase, the appreciation rate reaches 165.62%.
During the same period, Ningbo Shanshan achieved revenue of CNY 20.7 billion, up 151.94% year on year. In 2022, the company indicated that it will continue to focus on and expand the two core businesses of lithium battery anode materials and polarizers.
This capital increase and share expansion will help the company to optimize its asset and liability structure, reduce financial costs, enhance capital strength, and provide a financial guarantee for the expansion of the anode materials business. The strategic investors are core upstream and downstream of the anode material business, and the parties will further develop synergistically.
At present, China's domestic new energy vehicle market is developing rapidly, driving the demand for upstream batteries and materials. The main business of Ningbo Shanshan covers anode materials, cathode materials, electrolytes, and polarizers for display panels of lithium batteries.