ST Tony plans to transfer a 21.7% stake in Tony New Energy to local state-owned assets for 230 million yuan

Rui Cai Jing Liu Zhiying Recently, ST Tony (SH603595) announced that the company holds a 65% stake in its controlling subsidiary, Tony New Energy. The company plans to transfer a total of 31.7% of its equity in Tony New Energy.

Of which, 21.7% will be transferred to Huzhou Dongli and Huzhou Talent Fund Phase II, with a transaction price of 230 million yuan; 10% will be transferred to an employee stock ownership platform established by Tony New Energy’s core management team for equity incentives, with a transaction price of 33.3567 million yuan.

As of the valuation date, November 30, 2025, the total equity valuation of Tony New Energy was 1.06 billion yuan, an increase of 726 million yuan over its net asset book value, with an appreciation rate of 217.78%.

Tony New Energy was established on August 13, 2019, with Shen Xingfang as the legal representative, a registered capital of 15.3846 million yuan. Its main products are flexible printed circuit boards (FPCA) and integrated busbars (CCS), widely used in new energy vehicles, various electrochemical energy storage systems (grid storage, industrial and commercial storage, household storage, etc.), and high-end electric tool power battery packs.

In the first 11 months of 2024 and 2025, Tony New Energy’s operating revenue was 406 million yuan and 585 million yuan, respectively, with net profits of 17.3895 million yuan and 54.8861 million yuan.

Huzhou Lianzhi Chunxu, ST Tony’s actual controllers Shen Xingfang, Shen Xiaoyu, and their spouses jointly committed that the total net profit of Tony New Energy for 2026, 2027, and 2028 should not be less than 240 million yuan. After the performance commitment period, if Tony New Energy fails to achieve the promised total net profit, the above commitments will require cash compensation to Huzhou Dongli and Huzhou Talent Fund Phase II.

It has been verified that Huzhou Dongli and Huzhou Talent Fund Phase II are acting in concert, with their executive partner being Huzhou Innovation and Entrepreneurship Investment Co., Ltd. (a state-owned enterprise). After the completion of this transaction, ST Tony’s equity stake in Tony New Energy will decrease from 65% to 33.3%, and Huzhou Dongli and Huzhou Talent Fund Phase II will hold a combined 56.7% stake.

ST Tony stated that this transaction is mainly based on the company’s strategic deployment to focus on its core business, quickly recoup funds through the sale of part of its subsidiary’s equity, and develop new projects and products with major clients. This aims to enhance the company’s overall core competitiveness and accelerate industrial upgrading. Additionally, the equity incentives in this transaction will help improve the cohesion of the subsidiary’s management team. With the continued increase in holdings by the original state-owned shareholders, Tony New Energy will have stronger human and financial resources to achieve rapid development of its flexible printed circuit board business.

ST Tony was founded in 2008 and successfully listed on the main board of the Shanghai Stock Exchange in 2017. The company focuses on the research, production, and sales of ultra-fine alloy wires, metal-based composite materials, and other new materials. Its products are widely used in five major fields: consumer electronics, medical devices, solar photovoltaic, new energy vehicles, and semiconductor new materials.

ST Tony expects a net profit attributable to the parent company of between -65 million yuan and -45 million yuan in 2025, compared to 11.5179 million yuan in the same period last year, indicating a loss; it also expects a net profit attributable to the parent after deducting non-recurring gains and losses of between -73 million yuan and -53 million yuan.