Songyan New Energy Materials (Quannan) Co., Ltd., a wholly-owned subsidiary of Shenzhen Sunxing Light Alloy Materials Co., Ltd., plans to transfer assets related to a 3,000tpa LiPF6 production line and a 2,000tpa LiPF6 production line to Ganzhou Songyan, a 100%-owned subsidiary of Songyan New Energy. Upon completion of the asset transfer, Songyan New Energy will sell 100% shares it holds in Ganzhou Songyan to Jiangxi Huikai Chemical Co., Ltd., a holding subsidiary of Shenzhen Sunxing, for a total consideration of RMB160 million (USD22.13 million).
In 2021, Shenzhen Sunxing announced a plan to invest in a 15,000tpa LiPF6 project in Sonyan, Jiangxi, and a pilot production line was put into operation in December 2021, before the phase one of 3,000tpa and phase two of 2,000tpa respectively went into operation in September and December 2022. The third production line with capacity of 7,000tpa hasn't started production yet.
Shenzhen Sunxing explained that it had suffered losses from the LiPF6 business segment as prices for the material slumped overs the past years amid the lower-than-expected demand, and there would be hardly any obvious improvement in operating performance in the short term. Therefore, the company plans to strip off certain LiPF6 assets to improve its financial condition.
