On May 24th, 2023, a landmark signing ceremony for the merger and acquisition between Chongqing Zongshen Power Machinery Co., Ltd. and Dongguan Lithium Valley Energy Co., Ltd. was held at Lithium Valley’s new facility in Dongguan. The event was attended by prominent leaders from both parties, including Zongshen Industrial Group Chairman Mr. Zuo Zongshen, Zongshen Industrial Group Executive President Mr. Hu Xianyuan, and Zongshen Power Chairman and General Manager Mr. Huang Peiguo, alongside the management team from Lithium Valley, including General Manager Mr. Gao Shaoheng and Deputy General Manager Ms. Xu Ting. Government officials from the Dongguan Development and Reform Bureau and other local government representatives were also present to witness the historic agreement.
Under the terms of the agreement, Zongshen Power will acquire a 60% stake in Lithium Valley, making it the controlling shareholder. This acquisition marks a significant milestone in Zongshen Power’s strategic expansion into the energy storage sector. The two companies complement each other in multiple areas, including business categories, market channels, technological research and development, and production capabilities. Moving forward, they plan to collaborate closely to accelerate the growth of the energy storage industry and drive the full industry chain development of new energy solutions.
During the ceremony, Mr. Gao Shaoheng, General Manager of Lithium Valley, introduced the company’s history, from its modest beginnings with a small team of just 20 people to its current scale of nearly 300 employees. He expressed strong confidence in the future and emphasized the significant opportunities that come with joining the Zongshen Power family. Mr. Huang Peiguo, Chairman and General Manager of Zongshen Power, highlighted that the cooperation would extend beyond just equity investment. Zongshen Power will empower Lithium Valley with its expertise in market channels, intelligent equipment, and large-scale production management, turning Lithium Valley into a digital, information-driven, and intelligent high-tech enterprise.
This merger represents both an opportunity and a challenge. The two companies aim to embrace the philosophy of “co-creation, sharing, and win-win cooperation” as they work together towards even greater achievements. Mr. Hu Xianyuan, Executive President of Zongshen Industrial Group, emphasized the importance of establishing medium-term performance goals and long-term strategic development plans to ensure the integration of both teams and businesses. Both companies are confident in their shared vision and ability to move forward steadily toward their common goals.
Local government representatives, including Mr. Lu Zhan, Deputy Secretary of the Zhangmutou Town Party Committee, expressed their excitement over Lithium Valley’s rapid growth and its leading role in the high-tech energy storage industry in the region. With Zongshen Power’s strong backing, the merger is expected to further enhance Lithium Valley’s contributions to the development of the new energy industry in Dongguan.
Zongshen Industrial Group Chairman Mr. Zuo Zongshen concluded that the merger perfectly aligns with the strategic vision of both parties. Zongshen Power has been focusing on transitioning from traditional fossil fuels to clean energy in recent years, and its investment in the energy storage industry is a key step in achieving its transformation goals. This acquisition lays a solid foundation for Zongshen Power’s deepening involvement in the energy storage sector. With the support of capital markets, resource integration, and internal management optimization, both companies are poised to make great strides as they embark on a new journey together.
This successful merger and acquisition will undoubtedly propel both Zongshen Power and Lithium Valley to new heights, injecting fresh momentum into the healthy development of the new energy industry in China.