Shanshan's controlling shareholder faces reorganization

Ningbo Shanshan (SSE: 600884) announced that the Ningbo Yinzhou District People's Court has accepted an application for the reorganization of its controlling shareholder, Shanshan Group, effective February 25, 2025. While the court has accepted the reorganization application, the ultimate success of Shanshan Group's reorganization remains uncertain. The company emphasized that its operations remain independent and unaffected by the reorganization proceedings at this time. Shanshan Group directly holds 14.21% of Ningbo Shanshan’s shares, and together with its acting in concert parties, controls 27.87% of the company's total equity. The shares are subject to a high proportion of pledge, judicial freeze and marking. The company cautioned investors that the reorganization could lead to adjustments in Shanshan Group's shareholding and potentially alter control of Ningbo Shanshan.