Shanshan Group reorganization nears critical vote, could change control of Ningbo Shanshan

Ningbo Shanshan Co., Ltd. announced that its controlling shareholder, Shanshan Group Co., Ltd., and its subsidiary, Ningbo Pengze Trading Co., Ltd., which were substantively merged for reorganization on March 20, 2025, signed a "Reorganization Investment Agreement" on September 29, 2025. The third creditor meeting for the Shanshan Group and Pengze Trading consolidated bankruptcy reorganization is scheduled for October 21, 2025, to vote on the "Reorganization Plan (Draft)."

Under the proposed "Reorganization Investment Agreement" and "Reorganization Plan (Draft)," reorganization investors are set to acquire control over 23.36% of Ningbo Shanshan's shares through a combination of direct acquisition, acquisition via a service trust, and voting rights of remaining shares. Should the plan be approved and successfully implemented, Ningbo Shanshan's controlling shareholder would change to an investor holding platform, and the ultimate controlling person would become Ren Yuanlin.

The company cautioned that the reorganization plan still requires approval from creditor and investor meetings, court ratification, and completion of operator concentration filings by some investors. The success of the reorganization remains uncertain, and there is a risk that investors may not fulfill their obligations as per the investment agreement. Ningbo Shanshan assured that it operates independently with no non-operating fund occupation or illegal guarantees by the controlling shareholder.