Chinese lithium battery materials maker Shanshan Corporation announced on Monday that it plans to win more investment from its four strategic investors through its wholly-owned subsidiary.
Additional investments in its subsidiary Shanghai Shanshan Lithium Battery Material Technology Co. Ltd. have been made by Wending Investment, BYD, Amperex Technology Limited (ATL) and the Kunlun Fund.
The total capital raised totaled 3.05 billion yuan ($477 million), and the new registered capital subscribed for Shanghai Shanshan Lithium Battery is 305 million yuan, among which BYD increased its capital by 150 million yuan and ATL by 100 million yuan.
After the completion of this capital increase, the registered capital of Shanghai Shanshan Lithium Battery will change from 877 million yuan to 1.182 billion yuan, and the shareholding ratio of Shanshan Corporation in Shanghai Shanshan Lithium Battery will be reduced from 89.99% to 87.08%. Shanghai Shanshan Lithium Battery will remain a holding subsidiary of Shanshan Corporation.
Shanshan Corporation was established in 1992 and is principally engaged in the research and development, manufacture and distribution of lithium battery materials. The company is also involved in the new energy automobile and energy management businesses while also having interests in non energy businesses such as clothing, venture capital and financial leasing. Among these businesses, the new energy business has become the main driver of its success the focus of its future development.
In addition, Shanshan Corporation disclosed its 2021 annual report on Tuesday. In the 2021 fiscal year, the company achieved an operating income of 20.699 billion yuan, a year-on-year increase of 151.94% while the net profit attributed to the parent company was 3.34 billion yuan, a year-on-year increase of 2320%. The sharp year-on-year increase in performance was mainly derived from the strength in the new energy vehicle industry throughout the year and the strong demand from downstream consumers. Further, Shanshan Corporation accelerated its production release for its lithium battery materials businesses after seeing its overall sales volume and profit levels increase significantly year on year.