New Energy Subsidiary of Shanshan to Launch USD145 Mln Round-A Financing

Li Suwan / Yicai

2016-12-09

(Yicai Global) Dec. 9 – Winsky New Energy Co., a subsidiary of Ningbo Shanshan Co. [SZ: 600884], the world's largest supplier of lithium battery materials, is to invest in construction of urban quick charging and switching networks. The company will, therefore, launch the CNY1 billion (about USD145 million) Round-A financing.

Shanshan subsidiary Winsky New Energy is to launch the CNY1 billion Round-A financing, said Xu Zhengpeng, vice president of Shanshan and President of Winsky New Energy Co. in an interview with Yicai Global.

Talking about difficulties inherent in the sector, Xu said that new energy vehicles (NEV) feature a long industrial chain with several weak links and therefore the expansion of some links, such as the operation of charging piles and the leasing of new energy vehicles, is still hard to advance.

Winsky New Energy hasn't made profits yet just like 90 percent of the charging pile operators in China, he said, adding that they, however, have achieved an even balance of payment in Shanghai, and the whole company will strive to achieve overall balance and profitability in 2017.

Winsky New Energy is an enterprise set up with the investments of Shanshan, which is one of the first-batch operators of new-energy charging facilities that was granted qualifications upon recordation. It operates 2,000 new energy vehicles as well as 3,000 charging piles in 19 key Chinese cities including Shanghai, Shenzhen and Guangzhou.