On the evening of October 31, Suzhou Tianhua New Energy Technology Co., Ltd. announced that its actual controllers, Pei Zhenhua and Rong Jianfen, signed a share transfer agreement with Contemporary Amperex Technology Co., Limited (CATL, stock code: 300750). The couple agreed to transfer a total of 108 million unrestricted tradable shares, representing 12.95% of Tianhua New Energy’s total equity, to CATL for a total consideration of 2.635 billion yuan, at 24.49 yuan per share. Post-transaction, CATL will hold a 13.54% stake in Tianhua New Energy, becoming a key strategic shareholder.

As of October 31’s market close, Tianhua New Energy’s stock price stood at 30.42 yuan per share, with a total market cap of 25.271 billion yuan. CATL, trading at 388.77 yuan per share, maintained its position as the highest-valued battery company globally, with a market cap of 1.77 trillion yuan.

**Key Transaction Details** Under the disclosed agreement, Pei Zhenhua will transfer 49.209 million shares (5.92% of Tianhua’s total equity), while Rong Jianfen will transfer 58.3734 million shares (7.03%). Prior to the deal, the couple held 23.69% and 8.12% of Tianhua, respectively, while CATL held only 0.59%. Post-transaction, their stakes will drop to 17.77% and 1.10%, retaining control, while CATL’s stake rises to 13.54%, making it the third-largest shareholder.

Notably, CATL has committed not to sell the acquired shares for 18 months after the transfer’s completion. The deal does not trigger a mandatory tender offer or constitute a related-party transaction but requires compliance review by the Shenzhen Stock Exchange and registration with China Securities Depository and Clearing Corporation Limited.

**Payment Structure** The payment will be made in three installments: - 20% (approximately 527 million yuan) within five business days after meeting prerequisites, including regulatory approval. - 70% (approximately 1.844 billion yuan) within five business days after share transfer registration and tax payments. - The remaining 10% (approximately 263 million yuan) within 30 days of registration.

**Strategic Rationale** As the global leader in power batteries, CATL’s investment aligns with its vertical integration strategy. Tianhua New Energy specializes in lithium battery materials, offering technical expertise and production capacity, while CATL seeks stable, high-quality upstream supply. The partnership aims to deepen synergy across the supply chain.

**Governance Adjustments** Tianhua’s board will expand to nine members, with CATL nominating one non-independent and one independent director. Pei and Rong will facilitate a shareholders’ meeting within 20 days of registration to approve these appointments.

**Industry Implications** CATL’s strong financials—total assets of 896.082 billion yuan and net profit of 49.034 billion yuan for the first three quarters of 2025—ensure transaction feasibility. Experts highlight the deal as emblematic of industry consolidation, where leading firms secure critical supply chain links to enhance competitiveness and optimize sector dynamics.

The collaboration is expected to foster R&D synergy, production coordination, and cost efficiency, setting a benchmark for deep industry partnerships. Market attention now turns to regulatory approval and operational integration.