Sinochem International subsidiary seeks bankruptcy amid continued losses

Sinochem International (Holdings) Co., Ltd. announced that its board approved the bankruptcy reorganization application for its controlled subsidiary, Ningxia Sinochem Lithium Battery Materials Co., Ltd. (Ningxia Lithium). The decision, made on October 13, 2025, follows Ningxia Lithium's continuous losses, insolvency, and inability to repay due debts, influenced by external market conditions. Sinochem International holds a 94% stake in Ningxia Lithium, which was established on October 15, 2018.

As of December 31, 2024, Ningxia Lithium reported total assets of yuan 277.8127m and total liabilities of yuan 301.0774m, with a net loss of yuan 524.9413m for the year. By June 30, 2025, assets stood at yuan 243.9357m against liabilities of yuan 288.3264m, and a net loss of yuan 21.5812m for the first half of the year. The company aims to introduce strategic investors to improve its capital structure and mitigate further investment losses.

Sinochem International has recorded a full impairment of its yuan 470m long-term equity investment in Ningxia Lithium and has incurred an obligation for a yuan 226.41m loan guarantee. The reorganization process, pending court acceptance, will remove Ningxia Lithium from Sinochem International’s consolidated financial statements. The company cautions investors about the uncertainty of the outcome and potential impacts on current period profits.