Samsung SDI Tianjin factory shareholders transfer 30% stake

Shanghai (Gasgoo) - Following the closure of SKI China factory, another Korean battery enterprise is in trouble. As a result of insolvency, Chinese shareholders of Samsung SDI Tianjin factory intend to transfer 30% stake.

On October 16, according to Tianjin Property Rights Exchange, Tianjin Zhonghuan Electronics Corporation and Tianjin Economic and Technological Development Zone State-owned Assets Management Company (EDSM) openly transfer a total of 30% stake of Samsung Tianjin Battery Co., Ltd.

Among that, Tianjin Zhonghuan will sell 10% stake of Samsung Tianjin Battery with the transfer reserve price of 11,810,300 yuan; EDSM sells 20% stake with the transfer reserve price of 23.6206 million yuan.

Samsung Tianjin Battery was founded in October 2015. Its main businesses include the development and production of circular lithium-ion batteries for vehicles.

As an important part of Samsung SDI China responsible for power battery of new energy vehicles, Samsung Tianjin battery has not developed very well since its foundation.

Samsung Tianjin Battery sales fell sharply in the past two years. Operating income in 2016 was 492 million yuan, a loss of 85.9343 million yuan, a debt of 926 million yuan. Up to August 31, 2017, Samsung Tianjin Battery posted a revenue of 90.08 million yuan, a net profit of 9.0416 million yuan.

Despite of its profitability in 2017, the overall development of Samsung Tianjin Battery is still not ideal and they have been trapped in development dilemma of insolvency.

Industry insiders think the main reason for the selling is that Samsung SDI has been unable to make good progress in power battery business in China and cannot enter the recommended directory to obtain subsidies. In addition, the explosion incident also makes Samsung SDI business become worse.

Insiders also point out that, in fact, products of Samsung, LG and other enterprises have more advantages in performance and cost. However, because of being unable to get China's new energy vehicle subsidies, local vehicle companies dare not to use Japan and South Korea Batteries, which results in the difficulty in their business in China.