(Yicai Global) April 20 -- Shanshan Holding has joined hands with Chinese battery giants BYD and Contemporary Amperex Technology to invest CNY3 billion (USD477 million) in a subsidiary to expand its cathode materials business for new energy vehicle batteries.

Shanshan, two units of CATL, BYD, and CNPC Kunlun Capital will invest CNY2.4 billion (USD374.5 million), CNY400 million (USD62.5 million), CNY150 million, and CNY100 million, respectively, in Shanshan Technology, the Ningbo-based company said in a statement yesterday.

After the investment, Shanshan Technology’s registered capital will increase to CNY1.2 billion from CNY877 million and its parent company’s stake will drop to 87.1 percent from 90 percent.

The financing will help Shanghai-based Shanshan Technology to optimize its asset and liability structure and provide funds for its expansion in the cathode materials business. The new investors are core clients and suppliers in the upstream and downstream segments, Shanshan added.

Shanshan’s shares [SHA: 600884] closed 0.9 percent higher today at CNY25.16 (USD3.93) apiece.

The firm’s net profit likely rose 148 percent to 181 percent to between CNY750 million and CNY850 million in the first quarter from a year earlier. For 2021, profit skyrocketed 24 times to CNY3.3 billion. Revenue was CNY20.7 billion (USD3.2 billion), up 152 percent in the period.

Last year, Shanshan Technology’s net profit was CNY601 million on revenue of CNY4.2 billion.

Editor: Futura Costaglione