In-depth Analysis of Fangda Carbon's Termination of Participation in the Restructuring of Shanshan Group

Now I will provide you with a comprehensive analysis report based on the collected data.

Shanshan Group was once the “first stock of Chinese clothing”, then successfully transformed into a global dual leader in lithium battery anode materials and polarizers, but fell into bankruptcy restructuring crisis due to debts as high as

[2].

• February 2025:
  Yinzhou District People’s Court of Ningbo City, Zhejiang Province ruled to accept Shanshan Group’s bankruptcy restructuring [2]
• March 2025:
  The court ruled to conduct substantive merger restructuring of Shanshan Group and Ningbo Pengze Trading Co., Ltd. [2]
• September 2025:
  In the first round of restructuring, the consortium composed of Yangzijiang Financial Holdings under the “private ship king” Ren Yuanlin, TCL Industrial Investment, Orient Asset Management, etc., won and signed a
  3.284 billion yuan restructuring agreement
  . However, this plan was rejected at the creditor meeting in October [2,5]
• November 7, 2025:
  Since the first-round plan was not approved, Shanshan Group’s administrator launched the second round of restructuring recruitment, and clearly stated that “
  priority will be given to investors with polarizer or anode material industry background
  ”, while increasing the floor price from the first round’s
  8.65 yuan/share to 11.50 yuan/share
  [2,3]

On November 24, 2025, Fangda Carbon held a board meeting and agreed to participate as an

in the investor recruitment for the substantive merger restructuring of Shanshan Group and its wholly-owned subsidiary Ningbo Pengze Trading Co., Ltd. [1,3].

• Leverage advantages in technology, capital, and channels in the anode industry
• Accelerate the layout of the anode industry and achieve industrial chain integration
• Fully exert the synergistic effect of new energy industries such as solid-state batteries [3]

Fangda Carbon plans to build a full-chain layout of “

” to achieve the transition from a traditional material supplier to a new energy giant [2].

---

According to Fangda Carbon’s announcement, the company agreed to participate in the restructuring on

, but announced termination just over a month later on , with extremely limited actual due diligence time [1,3].

1. Asset Complexity:
   The core assets held by Shanshan Group—Shanshan Co., Ltd. (600884.SH)'s anode material and polarizer businesses—have high technical thresholds and require professional asset evaluation
2. Complex Debt Structure:
   Declared claims exceed 40 billion yuan [5], involving multiple creditors with intricate debt relationships
3. Legal Risks:
   As of December 15, 2025, among the Shanshan Co., Ltd. shares held by Shanshan Group, a total of about
   526 million shares
   are still under judicial freeze or sequential freeze [2], with high legal risks

Fangda Carbon has paid a [1,3], and there is uncertainty about whether this fund can be fully returned.

As the world’s second-largest anode material shipper [2], Shanshan Co., Ltd.'s core value lies in:

• Anode material business (world’s second)
• Polarizer business (world-leading)
• Technical accumulation and patent barriers

However, under the background of bankruptcy restructuring, the value evaluation of these high-quality assets faces huge challenges:

• It is difficult to accurately quantify the erosion of asset value by debts
• There is uncertainty about the operational recovery capacity after restructuring
• It is difficult to predict the impact of changes in the industry competition pattern on profitability

Fangda Carbon’s announcement stated that “it cannot make a reasonable value judgment on the target assets” [1,3], which reflects the company’s prudent attitude in

.

Fangda Carbon is a leading enterprise in the domestic graphite electrode industry, mainly engaged in carbon product business [6]:

• Graphite electrodes (ultra-high power, high power, ordinary power)
• Special graphite
• Carbon bricks
• Carbon new materials (including lithium battery anode materials)

According to financial analysis data, Fangda Carbon in 2024:

• Free cash flow:
  519 million yuan
  [7]
• Debt risk classification:
  Low risk
  [7]
• Current ratio:
  4.64
  [0]
• Quick ratio:
  3.89
  [0]

1. Main Business Focus:
   Although Fangda Carbon’s traditional carbon business (graphite electrodes) and new energy anode materials have synergy, there are differences in technical paths, customer systems, and business models
2. Capital Allocation:
   The 50 million yuan margin and possible restructuring investment require more refined capital allocation with the company’s strategic planning in new materials and new energy fields
3. Integration Risks:
   The complexity and risks of cross-industry integration may exceed expectations

---

According to the company’s announcement, this termination decision “

” [1,3].

• Margin Handling:
  There is uncertainty about the recovery progress of the 50 million yuan due diligence margin, but the impact is limited relative to the company’s financial status (company’s free cash flow is 519 million yuan [7])
• Stock Price Performance:
  From November 1, 2024 to January 3, 2025, Fangda Carbon’s stock price fell from 5.26 yuan to 4.65 yuan, a drop of
  11.60%
  [8], but this drop is related to the market environment and industry factors in the same period and cannot be fully attributed to the termination of restructuring

• Avoided possible high-risk investments
• Maintained financial stability (low debt risk [7])
• Can focus more on the independent development of the main business and new materials/new energy fields

• Missed the opportunity to quickly layout the new energy anode material industry chain
• Competitors (such as China Bao’an-Beterui Consortium) may gain scale advantages through the integration of Shanshan Co., Ltd.

Fangda Carbon’s withdrawal as an

has caused Shanshan Group’s restructuring process to lose an important strategic investor [1,2].

According to public information, the main competitors in Shanshan Group’s restructuring include:

Competitor	Background	Advantages
China Bao’an-Beterui Consortium	World’s largest anode material shipper	Strong industry synergy effect and leading technology
Hunan Salt Industry Group	Local state-owned enterprise	Strong capital strength and policy support
Other interested investors	Undisclosed	Diversified backgrounds

As of the on-site bidding presentation on December 18, 2025, there were still

who submitted plans to enter the presentation, while [3,4].

The stock price performance of Shanshan Co., Ltd. (600884.SH) reflects market uncertainty:

• From November 1, 2024 to January 3, 2025, the stock price fell from 9.02 yuan to 7.24 yuan, a drop of
  19.73%
  [9]
• 52-week price range: 5.67-16.80 yuan [0], with large fluctuations

• Market value:
  29.03 billion yuan
  [0]
• EPS (TTM):
  -0.05 yuan
  [0] (loss)
• Net profit margin:
  -0.53%
  [0] (loss)
• Current ratio:
  1.14
  [0]
• Quick ratio:
  0.64
  [0]

---

• First:
  Beterui (under China Bao’an) - world’s largest anode shipper
• Second:
  Shanshan Co., Ltd. -稳居全球第二, pioneer of artificial graphite technology route
• Others:
  Jiangxi Zichen, Kaijin Energy, Zhongke Electric, etc.

1. Technology Upgrade:
   Transition from “quantity expansion” to “structural iteration”, competition focus shifts to microstructure regulation, fast charging performance, and solid-state system adaptation [6]
2. Industrial Chain Synergy:
   The basic engineering capabilities of the carbon industry need to enter the new energy system, while the demand of lithium battery material enterprises can no longer be met by traditional paths alone [6]
3. Solid-State Batteries:
   The role of carbon materials in heat conduction, electrical conduction, and structural reinforcement in solid-state systems will be significantly enhanced

The business synergy between Fangda Carbon and Shanshan Co., Ltd. was once considered an important logic for this restructuring:

• Traditional advantages of the carbon industry in furnace engineering, carbon structure evolution, and micro-impurity control
• Graphite electrode production capacity ranks first in Asia and second in the world [6]
• High self-sufficiency rate of core raw materials such as needle coke (up to 67.8%) [6]

• Years of deep cultivation in the lithium battery anode material system
• High-precision coating, solvent system management, and film tension control technology in the polarizer business
• Terminal large-scale adaptation and surface engineering knowledge

• Technical level: The high-temperature structure advantages of carbon materials are highly consistent with the demand for microstructure regulation of lithium battery material enterprises
• Process level: The film engineering capabilities of the polarizer business can be transferred to the engineering preparation of solid-state batteries and composite electrolyte materials [6]
• Industrial chain level: Build a full-chain layout from needle coke to anode materials to solid-state batteries

1. Risk Control Priority:
   Maintain prudence in complex transactions and avoid making major decisions due to time pressure
2. Strategic Focus:
   Need to find a clearer balance between traditional carbon business and new energy business
3. Endogenous Development:
   May shift to independent research and development or smaller-scale cooperation instead of large-scale mergers and acquisitions

1. Time Pressure:
   The deadline for submitting the restructuring plan draft has been extended to December 20, 2025 [4], and time is tight
2. Investor Confidence:
   The withdrawal of multiple interested investors may affect the market’s confidence in the success of the restructuring
3. Industry Synergy Priority:
   The administrator clearly stated that “priority is given to those with polarizer and/or anode industry background” [2], and this direction is expected to continue

---

1. Conflict Between Time and Information:
   Fangda Carbon could not complete sufficient due diligence on Shanshan Group’s complex assets within just over a month, which is the core reason for the termination

2. Trade-off Between Risk and Return:
   Although Shanshan Co., Ltd.'s anode material and polarizer businesses have strategic value, Fangda Carbon chose
   risk aversion
   under multiple risks such as debt scale, legal risks, and integration uncertainty

3. Return to Strategic Focus:
   Combined with the company’s strategic planning in new materials and new energy fields, Fangda Carbon may believe that
   endogenous development or smaller-scale cooperation
   is more in line with its long-term interests

4. Rational Market Reaction:
   From the perspective of stock price performance, the market reacted relatively rationally to Fangda Carbon’s termination decision without severe fluctuations, indicating that investors understand the prudent considerations behind this decision

• Recovery status of the 50 million yuan margin
• Specific strategic layout of the company in new materials and new energy fields
• Operational status of the traditional carbon main business

• Specific situation of the remaining 7 groups of interested investors
• Progress of the China Bao’an-Beterui Consortium (need to pay attention to antitrust review [2])
• Whether the restructuring plan can be approved before the deadline of December 20, 2025

• Technological evolution and competition pattern changes in the new energy anode material industry
• Impact of solid-state battery industrialization progress on carbon material demand
• New cooperation models between carbon enterprises and new energy material enterprises

---

[0] Jinling API Data - Market data and financial data of Fangda Carbon (600516.SS) and Shanshan Co., Ltd. (600884.SH)

[1] Beijing News Shell Finance - “Fangda Carbon: Terminate Participation in Substantive Merger and Restructuring of Shanshan Group and Its Wholly-owned Subsidiary” (https://www.jiemian.com/article/13841010.html)

[2] Caixin Society - “Due Diligence Insufficient to Make Reasonable Valuation? Fangda Carbon Officially Announces Termination of Participation in Shanshan Group’s Restructuring” (https://www.cls.cn/detail/2247241)

[3] Sina Finance - “Fangda Carbon: Terminate Participation in Substantive Merger and Restructuring of Shanshan Group and Its Wholly-owned Subsidiary” (https://finance.sina.com.cn/tech/roll/2026-01-04/doc-inhfeeek7342535.shtml)

[4] Eastmoney.com - “Due Diligence Insufficient to Make Reasonable Valuation? Fangda Carbon Officially Announces Termination of Participation in Shan…” (http://finance.eastmoney.com/a/202601043607959968.html)

[5] Caixin.com - “40 Billion Debt: Shanshan Group’s Restructuring Plan Not Approved, Creditors and Investors Oppose Together” (https://finance.caixin.com/2025-11-04/102379088.html)

[6] Carbon Information Network - “Fangda Carbon, Planning to Enter Shanshan” (https://www.carbonconf.com/index/news/news_show/article_id/213.html)