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State Bailout Ends Shanshan’s $6 Billion Debt Crisis After Family Feud

Published: Apr. 17, 2026 11:20 p.m. GMT+8

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Zheng Yonggang established Shanshan in 1992 as a garment firm.

Creditors of bankrupt Chinese battery materials supplier Shanshan Group Co. Ltd. have approved a restructuring plan that transfers control of the company to state-owned Anhui Wanwei Group Co. Ltd.

The state-orchestrated takeover of the major technology supplier resolves a chaotic two-year collapse driven by its founder’s sudden death, a bitter family succession battle, and massive alleged offshore asset stripping by his heir.

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Creditors approved restructuring plan transferring Shanshan Group control to state-owned Anhui Wanwei Group.
Crisis followed founder Zheng Yonggang's February 2023 death, family succession battle, and son Zheng Ju's alleged 9.5B yuan offshore asset stripping.
Wanwei/Conch invest 4.99-7.16B yuan ($730M) for 21.88% voting stake; 44.6B yuan debt yields 2.3% creditor cash recovery.

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Who’s Who

Shanshan Group Co. Ltd.: Shanshan Group Co. Ltd., a Shanghai-listed lithium battery anode materials supplier, underwent creditor-approved restructuring, transferring control to state-owned Anhui Wanwei Group (via Conch Group) with a 4.99-7.16 billion yuan ($730M) investment for 21.88% stake. Crisis followed founder Zheng Yonggang's 2023 death, family feud, and alleged 9.5B yuan asset stripping by son Zheng Ju, who fled China. Total debt: 44.6B yuan. (68 words)

Anhui Wanwei Group Co. Ltd.: Anhui Wanwei Group Co. Ltd., a state-owned firm, has taken control of bankrupt Shanshan Group via creditor-approved restructuring. With parent Conch Group, it will invest 4.99-7.16 billion yuan ($730M) for a 21.88% voting stake (13.5% direct, 8.38% via trust), making Anhui's state regulator the ultimate controller. It pledges to retain Shanshan's HQ and regional projects.

Conch Group: Conch Group, parent of Wanwei Group, will invest 4.99-7.16 billion yuan ($730M+) alongside Wanwei to secure a 21.88% voting stake in bankrupt Shanshan Group, making Anhui province’s state asset regulator the controlling shareholder.

LG Chem Ltd.: Shanshan Group expanded into polarizer manufacturing in 2020 by acquiring a majority stake in South Korea’s LG Chem Ltd.’s liquid crystal display polarizer unit.

Huishang Bank: Shanshan Group's most valuable remaining asset is a 3.64% stake in Huishang Bank, though its disposal is complicated by unresolved legal disputes with other shareholders.

Ningbo Financial Asset Management Co. Ltd.: Ningbo Financial Asset Management Co. Ltd., a local distressed asset manager, will liquidate Shanshan Group’s remaining noncore holdings. The most valuable asset is a 3.64% stake in Huishang Bank, complicated by unresolved legal disputes with other shareholders.

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