Recycling 2.565 Billion to "Replenish Blood," Nandu Power Plans to Transfer 100% Equity of Anhui Huabai Renewable Resources

Reprinted from: Cailian Press

Text | Cailian Press Chen Xiaoxiao

Nandu Power (300068.SZ), an energy storage company, plans to fully spin off its lead recycling business through its wholly owned subsidiary at a valuation of 1.415 billion yuan, completing its strategic shift from lead-acid to lithium batteries.

Recently, the company announced that it intends to transfer 100% equity of its wholly owned subsidiary Anhui Huabo Renewable Resources Technology Co., Ltd. (referred to as “Huabo Renewable Resources”), which is engaged in lead recycling, to Anhui Houji Lianeng Operation Management Partnership (Limited Partnership), at a negotiated price of 1.415 billion yuan.

Additionally, due to the transfer of Huabo Renewable Resources, Nandu Power’s internal loan of 1.15 billion yuan will be converted into external financial support. According to the agreement, the funds will be repaid in installments: 100 million yuan by the end of 2026, and the remaining 1.05 billion yuan in four installments during 2027. The principal unpaid will accrue interest at an annual rate of 3.5%, paid quarterly.

After this transaction, Nandu Power will recover a total of 2.565 billion yuan through the transfer of equity and financial support. Huabo Renewable Resources will no longer be included in the company’s consolidated financial statements. This transaction constitutes a related-party transaction but does not amount to a major asset restructuring.

The announcement further indicates that this transaction is expected to increase net profit attributable to shareholders of the listed company by approximately 83 million yuan in 2026, and increase owners’ equity attributable to shareholders by about 83 million yuan.

Nandu Power stated that this transaction is a key move to deepen strategic transformation and optimize resource allocation. After the funds are recovered, the company will further increase investment in the AIDC lithium battery energy storage field, accelerate the industrialization of cutting-edge technologies, expand into high-end domestic and international markets, and enhance its market share in the industry.

Founded in 1994, Nandu Power has long focused on the development and application of energy storage technologies and products. The company provides lithium-based products, system integration, and services for new energy storage, communication, data center energy storage, and civilian energy storage fields, and has established a complete industry chain from lithium battery manufacturing, system integration, operation services, to lithium resource recycling.

In the AIDC data center energy storage sector, the company has significant advantages, ranking first among Chinese companies in shipments of high-voltage lithium batteries for overseas data centers. Since 2025, the company has successively won several key projects: in January, it secured a 1.2GW high-voltage lithium battery data center project from GDS; in August, it won a 520 million yuan high-voltage lithium battery project for a U.S. data center.

Public information shows that Nandu Power acquired a 51% stake in Huabo Renewable Resources (formerly known as Huabo Technology) in 2015 to gain control, and in 2017, it paid 1.96 billion yuan to acquire the remaining 49%, completing 100% ownership of the company. Through this acquisition, Zhu Baoyi, the former general manager of Huabo Technology, joined Nandu Power’s board of directors and gradually became the company’s second-largest shareholder and current chairman.

Notably, according to the Profit Compensation Agreement signed in March 2017 between Nandu Power and Zhu Baoyi, Zhu Baoyi promised that Huabo Technology’s non-recurring profit after deducting non-recurring gains and losses would be no less than 400 million yuan, 550 million yuan, and 700 million yuan for 2017, 2018, and 2019 respectively. Ultimately, the company only achieved 89.36% of the promised performance and failed to meet the target.

Recently, the company’s control rights also faced some turbulence. In December 2025, Nandu Power announced plans for a change in control and the sale of its recycled lead segment, but just a week later, it announced the termination of the plan due to multiple negotiations on core terms failing to reach consensus.