The leading anode materials manufacturer, Ningbo Shanshan Co.,Ltd. (600884.SH), has achieved a remarkable turnaround in both performance and valuation.
Since April, Ningbo Shanshan Co. has surged by a maximum of 134.98%. In terms of performance, the company recorded revenue growth of 11.78% year-over-year in the first half, while net profit skyrocketed by 1079.59%.
The company's 150,000 shareholders are finally seeing light at the end of the tunnel.
Previously, the company had suffered three consecutive years of profit decline, with a full-year loss of 367 million yuan last year. The stock price experienced a maximum drawdown of 87.20% since 2021.
The current turnaround can be attributed to three key factors:
1. Resolution of internal conflicts, returning development to the right track 2. Industry recovery driving business performance revival 3. Strategic layout in solid-state batteries, further expanding valuation potential
The prolonged family feud lasting two years has finally come to an end.
In February 2023, Ningbo Shanshan Co. founder Zheng Yonggang died suddenly of a heart attack without leaving clear succession arrangements, triggering internal family power struggles.
A control battle lasting over two years ensued between his second son Zheng Ju and widow Zhou Ting.
On June 26, 2025, due to joint guarantee responsibilities, Ningbo Intermediate Court forcibly executed 1.81 million shares held by Zheng Ju, reducing his shareholding to zero and completely removing him from Ningbo Shanshan Co.
Prior to this, on February 25 this year, Ningbo Shanshan Co.'s controlling shareholder Shanshan Group was ruled by Ningbo Yinzhou District People's Court to enter bankruptcy reorganization proceedings.
Once the controlling shareholder's reorganization concludes, Ningbo Shanshan Co. may change ownership. Reports indicate that consortiums including Shenzhen Textile A + Shenzhen State-owned Assets, CATL, and Ningbo Industrial Investment Group have submitted due diligence applications, potentially forming a hybrid model of "industrial capital leadership + local state-owned capital support + financial capital arbitrage."
This signifies that Ningbo Shanshan Co.'s management expectations have stabilized, and operational uncertainties are gradually disappearing.
Beyond the end of internal conflicts, 2025 coincides with the recovery of the anode materials sector, bringing another positive factor for Ningbo Shanshan Co.
According to Longzhong Information, anode materials production in the first half of 2025 reached 1.1487 million tons, up 7.5% year-over-year.
Meanwhile, industry consolidation continues, benefiting leading players like Ningbo Shanshan Co. According to Gaogong Industry Research, TOP5 companies achieved capacity utilization rates exceeding 70%, with some approaching full production, while smaller enterprises lack orders and have mostly become contract manufacturers or ceased operations.
Gaogong Industry Research predicts that the anode materials industry is gradually emerging from its trough, with expectations for a new upward cycle to begin in the second half of 2025 or first half of 2026.
As an industry leader, Ningbo Shanshan Co. directly benefits from this trend.
According to SMM data compiled by Shanghai Metals Market, Ningbo Shanshan Co.'s anode material shipments in the first half ranked first in the industry, accounting for 21% of total industry shipments.
Currently, Ningbo Shanshan Co. is experiencing strong production and sales momentum.
The overseas Finland 100,000-ton anode capacity project has completed environmental impact assessment announcements, moving closer to capacity release.
In August this year, Shanshan Technology, a subsidiary of Ningbo Shanshan Co., signed a long-term cooperation agreement worth over 10 billion yuan for anode materials with Chuneng New Energy, causing industry sensation.
Ningbo Shanshan Co. has also positioned itself in the currently popular "solid-state battery" sector.
According to Ningbo Shanshan Co.'s interactive platform response on September 8, the company is developing anode materials for solid-state batteries and solid electrolyte composite anode materials, with some products already undergoing multiple rounds of testing at customer sites. The company is also independently establishing a solid-state battery anode materials evaluation system to accelerate development of specialized new anode materials for solid-state batteries.
Solid-state batteries are considered the ultimate form of future batteries, simultaneously offering high safety, energy density, high power, and fast charging capabilities.
Recently, an increasing number of leading companies have announced latest developments in solid-state batteries, bringing solid-state battery commercialization ever closer.
In May this year, BMW launched on-road testing of all-solid-state batteries, marking the transition of all-solid-state battery technology from laboratory validation to real vehicle applications.
In June, both Changan and SAIC announced plans to achieve solid-state battery mass production and vehicle installation by 2027.
On September 2, Gotion High-tech stated during an investor conference call that its first all-solid-state pilot production line has been officially connected, with Jinshi all-solid-state batteries currently in pilot production phase achieving 90% yield rates.
On September 3, EVE Energy announced the successful rollout of its "Longquan No. 2" all-solid-state battery, primarily targeting high-end applications such as humanoid robots and low-altitude aircraft.
Ningbo Shanshan Co.'s early positioning in solid-state battery anode materials positions it to benefit from large-scale solid-state battery commercialization.
Despite the recent rebound, due to previous deep declines, Ningbo Shanshan Co. remains quite attractively valued.
Compared to major industry leaders, Putailai's revenue last year was only 72% of Ningbo Shanshan Co.'s, yet its current total market capitalization reaches 56.12 billion yuan, 1.69 times Ningbo Shanshan Co.'s current market cap of 33.25 billion yuan.
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