Singapore-based investment manager Yangzijiang Financial is investing RMB 1.02 billion ($143.27 million) to lead the restructuring of lithium battery giant Shanshan Co.

Yangzijiang said in a statement on Wednesday that the firm together with its subsidiaries, have via its wholly owned subsidiary, Jiangsu New Yangzi Commerce & Trading (New Yangzi C&T), together with its strategic investors, Xiamen TCL Industrial Investment, and China Orient Asset Management Co., entered into a reorganization investment agreement on Tuesday to obtain a 23.36 percent effective voting rights in Ningbo Shanshan to lead the restructuring exercise.

The entire restructuring will be implemented in phases.

In Phase 1, the group with its strategic investors will establish an investment holding platform to acquire 223.31 million shares of Shanshan at RMB 11.44 ($1.61) per share, from Shanshan Group and its wholly owned subsidiary, Ningbo Pengze.

This corresponds to 9.93 percent of Shanshan’s total share capital.

Of this, the group will contribute RMB 1.02 billion ($143.27 million) and hold a 40 percent interest in the platform.

In addition, Xiamen TCL Industrial Investment, a wholly owned subsidiary of TCL Technology Group Corporation, will separately acquire 43.7 million shares (1.94 percent), with the voting rights of these shares entrusted to the platform.

In Phase 2, a limited partnership will be established with a service trust managed by China Orient Asset Management as limited partner.

This partnership will acquire 20 million shares of Shanshan (0.89 percent), 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 consortium will collectively hold effective voting rights representing approximately 23.36 percent of Shanshan.

These voting rights will be exercised by Yangzijiang Financial, in its capacity as the general partner of the platform, on behalf of the consortium.

The group’s investment of RMB 1.02 billion ($143.27 million) represents approximately 4.79 percent of the group’s net asset value as at June 30, 2025 and 4.51 percent of its market capitalization as at October 1, 2025.

The agreement remains subject to approval by the creditors’ meeting and the Ningbo Intermediate People’s Court before it can take effect, and there is no certainty or assurance that it will become effective or be completed.

In addition, there is no certainty whether the consortium will be able to fulfil its funding obligations under both Phase 1 and Phase 2.

The completion timeline of the reorganization and the final shareholding structure are therefore subject to change.

Established in 1992, Shanshan is engaged in the production and sale of lithium battery anode materials and polarizers, which are widely used in the new energy, battery and electric vehicle industries.

It operates both in China and internationally, serving customers across the energy storage and display sectors.

Leveraging the group’s expertise in corporate reorganization, Shanshan’s established position in the new energy sector, and the industry knowledge of the consortium members, the investment is expected to help stabilize Shanshan’s ownership structure and support its long-term development through funding, operational experience and business networks.

Shanshan 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.

“This equity investment represents a strategic move to capitalize on the gradual recovery of China economy by deploying the group’s robust cash reserves into high-quality investment opportunities,

“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,” said Ren Yuanlin, Executive Chairman and Chief Executive Officer of Yangzijiang Financial.

“With our established presence in both China Mainland and Singapore, the group continues to actively pursue promising opportunities that strengthen its core investment portfolio aiming to effectively deploy its cash reserves to generate sustainable returns to shareholders,” he added.

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