On July 3, Gotion High-Tech Co.,Ltd. (SZ: 002074, stock price 27.05 yuan, market cap 49.075 billion yuan) disclosed an announcement regarding the sale of shares in Anhui Tongguan Copper Foil Group Co.,Ltd. (SZ: 301217, stock price 154.63 yuan, market cap 128.2 billion yuan) by its wholly-owned subsidiary. The subsidiary, Hefei Gotion High-Tech Power Energy Co., Ltd. (hereinafter referred to as Hefei Gotion), cumulatively sold a portion of its holdings in Tongguan Copper Foil during the first half of 2026, totaling 8.3995 million shares, with a transaction value of 829 million yuan (including transaction fees).
This sale does not represent a complete divestment. Gotion High-Tech stated that as of the date of this announcement disclosure, the company still holds 10.5316 million shares of Tongguan Copper Foil, accounting for 1.27% of its total share capital.
It is noted that Hefei Gotion has held shares in Tongguan Copper Foil for many years, with the initial shareholding dating back to before its IPO. Tongguan Copper Foil's financial reports show that Hefei Gotion is the second-largest shareholder of tradable shares, holding 16.4629 million shares as of the end of the first quarter this year, representing a 1.99% stake.
A Case of Selling Too Early
In the first half of 2026, driven by market enthusiasm for AI servers and intelligent electronic materials, Tongguan Copper Foil's secondary market stock price performed exceptionally well, reaching a historical high exceeding 200 yuan per share in mid-June. The stock surged 483.43% from the beginning of the year to its peak. Calculations show that the average selling price for Hefei Gotion's recent share sale was 98.72 yuan per share. If the shares had been sold at the peak price, the proceeds could have been over 800 million yuan higher. This indicates that, to some extent, Gotion High-Tech missed out on a significant portion of Tongguan Copper Foil's recent rally.
It is observed that Hefei Gotion has been a shareholder of Tongguan Copper Foil for many years and was one of its earliest investors. On March 20, 2020, Anhui Tongguan Copper Foil Co., Ltd. held a shareholders' meeting, resolving to increase its registered capital from 600 million yuan to 622 million yuan, with the new registered capital subscribed by the new shareholder, Hefei Gotion.
As of December 31, 2021, Tongguan Copper Foil was 96.50% owned by Tongling Nonferrous Metals Group and 3.50% by Hefei Gotion. Following Tongguan Copper Foil's listing, Gotion High-Tech has engaged in share reductions, gradually lowering its stake to below 2%.
After this latest reduction, as of the latest announcement disclosure date, Hefei Gotion's remaining shareholding in Tongguan Copper Foil represents 1.27% of its total share capital.
Extensive Business Collaboration
It is noted that the relationship between Gotion High-Tech and Tongguan Copper Foil extends beyond shareholding. The companies have established a deep cooperative partnership centered on key upstream materials for lithium batteries, with annual related-party transaction announcements pre-allocating supply quotas.
Tongguan Copper Foil's 2025 annual report indicates that lithium battery copper foil is its second-largest core business, accounting for nearly 40% of its main business revenue. Its main product specifications include 4.5μm, 5μm, and 6μm. The primary raw material for lithium battery copper foil is cathode copper. Tongguan Copper Foil's controlling shareholder, Tongling Nonferrous Metals Group, is a major domestic cathode copper producer, suggesting Tongguan Copper Foil's business possesses relative resilience against industry fluctuations.
In 2025, the value of related-party transactions between the two companies concerning lithium battery copper foil was 513 million yuan. For 2026, these related-party transactions are expected to expand further, with Tongguan Copper Foil projecting transaction value of 928 million yuan with Gotion High-Tech and its subsidiaries for lithium battery copper foil.
Gotion High-Tech's 2025 annual report shows that, in addition to its stake in Tongguan Copper Foil, the company holds shares in numerous companies across the industrial chain upstream and downstream, classified as financial assets at fair value through profit or loss and other non-current financial assets. These include A-share companies such as Zotye Auto, JinkoSolar, Seres, Manners Technology, and Defu Technology, as well as Hong Kong-listed companies like Cao Cao Mobility, Ruqi Mobility, Conch Advanced Materials, Chery Automobile, and a few overseas-listed enterprises. In 2025, Gotion High-Tech reaped significant gains from its holdings in these companies.
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