Tianjin Lishen Battery Joint-Stock Co., Ltd. (“Lishen Battery”) recently completed its business reorganization (“Reorganization”) and capital increase of its subsidiaries through listing for the introduction of strategic investors (“Capital Increase,” together with “Reorganization” ; collectively referred to as this “Project”). JunHe as the special legal advisor of Lishen Battery participated in the whole process of this Project and provided professional legal services.
Lishen Battery is a high-tech enterprise controlled by China Chengtong Holdings Group Ltd. and the first ever domestic lithium-ion battery R&D and manufacturing enterprise. It has 25 years’ experience in lithium-ion battery R&D and manufacturing, and 15GWH annual production capacity of lithium-ion batteries. It is the only national engineering research center for lithium-ion power batteries in the domestic lithium battery industry, has the first UL witness testing laboratory in the domestic battery industry, and its enterprise technology center has been recognized by the state and postdoctoral scientific research mobile workstations. Lishen Battery’s business philosophy invokes "technical quality, international first-class green energy, for the benefit of mankind", and it provides customers with high quality power solutions. It is a forerunner and leading company in domestic new energy fields, and its products include square lithium iron, square ternary lithium batteries, round square (column), polymer batteries and super capacitors, covering power, consumption and energy storage. Its international high-end market share ranks among the top in the global lithium industry.
The Reorganization was carried out among Lishen Battery and its three subsidiaries: Lishen Power Battery System Co., Ltd., Tianjin Lishen New Energy Technology Co., Ltd. and Lishen (Qingdao) New Energy Co., Ltd. It involved the reorganization of operating assets, credits and debts and equity relating to power batteries and energy storage batteries under Lishen Battery. Several strategic investors were introduced after completing the Reorganization including Funds of State Budgetary Adjustment, Haitai Group, Haihe New Growth Momentum Fund, ABC International Investment and China Minmetals Corporation Yuanding, at a pre-investment valuation of RMB 13 billion through capital increase by listing on the China Beijing Equity Exchange. By implementing this Project, Lishen Battery achieved integration of its business resources and the introduction of strategic investors with business and capital synergies, which are of great significance in making a bigger and stronger battery and energy storage business segment.
JunHe was the special legal advisor of Lishen Battery and participated in the whole process of this Project. This included designing the transaction structure, discussing the reorganization plan, designing submissions to SASAC for approval, communicating with financial creditors and shareholders, assisting in the employee placement scheme, issuing legal opinions, negotiating and communicating with investors, and drafting and executing the transaction documents.. JunHe’s team was consistently affirmed and highly trusted by the client and the other intermediaries for its efficient, rigorous work style, and meticulous and dedicated attitude.
Partners SHI, Tiejun and LI, Ruochen led the JunHe team for this Project.