On November 2, Ningbo Shanshan announced that it decided to cancel Shanghai Shanshan New Energy Technology’s “Lithium-ion Battery Core Material Project” located in Shanghai Lingang Equipment Industrial Zone due to enormous backlash against it during public notice period of environmental impact assessment.

On June 20, 2011, Shanshan passed “Proposal about Executive Board’s Permission on Construction of Lithium-ion Battery Core Material Project” which stated that Ningbo Shanshan New Energy Technology, a wholly-owned subsidiary of Shanshan, would set up a project company as main investment body. The project would be located in Lingang Strategic Emerging Industry Base of Shanghai Minhang District, and mainly engage in production of lithium batteries’ anode materials.

We can see that Shanshan Co., Ltd., a company starting its business with clothing, attached great importance on lithium battery material business. The company achieved revenue of RMB1.87 billion in 2014H1, and net income attributable to the shareholders of listed company reached RMB119 million. During the same period, its lithium battery material business generated revenue of RMB1.15 billion and net income (attributable to the shareholders of listed company) of RMB51.3 million.