Eshare China Industry Insights blog

Chinese Firm Seeks a Turn-around in 2015 by Entering the Li-ion Battery Industry

In 2014, Citychamp Dartong saw a significant decrease in profit due to the depressing real estate sector. In order to create a new profit growth point, it has joined Xi’an Wuhua through share acquisition and entered Li-ion battery market.

On 15 Jan., 2015, Citychamp Dartong Co., Ltd. (Citychamp Dartong) announced that it had signed an agreement for Capital Increase and Share Expansion in Xi’an Wuhua New Energy Technology Co., Ltd. (Xi’an Wuhua). Citychamp Dartong invested USD13.86 million (RMB84.80 million) into Xi’an Wuhua and acquired 44.92% of shares, becoming one of the largest shareholders. The other is Northwest Industries.

  • Citychamp Dartong: a listed enterprise engaged in the development of real estate, and the production and sales of special enamel wire.
  • Xi’an Wuhua: mainly involved in the R&D, production, sales and service of Li-ion battery cathode materials and Li-ion battery pack.

In recent years, the growth of China’s real estate sector has slowed significantly. In 2014 especially, it was trapped in continuous recession, which resulted in the worsening performance of Citychamp Dartong. Its financial report for Q3 2014 showed that the net profit in Q1-3 was USD55.70 million (RMB340.82 million), a YoY decline of 73.81%. Looking for a way to turn things around in 2015, Citychamp Dartong predicted a bright future for the Li-ion battery market and acquired shares in Xi’an Wuhua.

Xi’an Wuhua boasts competitiveness in the production of Li-ion battery cathode materials, which are supplied to BYD Company Limited, Gree New Energy Technology Co., Ltd., and more. Xi’an Wuhua is also affiliated to China North Industries Group Corporation (Norinco Group), who are one of China’s leading forces in the research and development and manufacturing of defense products for land forces and the Chinese military.

Xi’an Wuhua is the only affiliated enterprise of Norinco Group that specializes in the production of Li-ion battery cathode materials. The company has shown great forward thinking by entering the market of defense products, as it will be directly responsible for providing products and technical support to the Chinese military.

Previously on 8 July 2014, Citychamp Dartong became the largest shareholder of Fujian Chuangxin Science and Development Co., Ltd. (Fujian Chuangxin) through capital increase. Fujian Chuangxin is heavily involved with the production of separator additives, and more specifically additives such as normal propyl chloroformate (NPCF) and vinyl ethylene carbonate (VEC). These are both additives which are included in the supply chain of power batteries in the electric vehicle sector. Through its acquisitions, Citychamp Dartong have put themselves in an advantageous position to enter the market of military and defense products, as well as the booming Li-ion battery industry.

Our Li-ion market research and analysis shows that the benefits can be utilized in a variety of industries, and Citychamp Dartong is just one example of how companies are currently doing this. For more information on the Li-ion battery industry, visit CCM to receive all the latest data, market analysis, policy announcements, Li-ion manufacturer news and much more.

About CCM
CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With staff of more than 150 dedicated highly-educated professionals, CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis, and Consultancy Service. For more information, please visit

Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China
Tel: 86-20-37616606
This article was provided by CCM, a leading provider of data and business intelligence on China's chemicals market.

Contact us:


  • Reads
  • Permalink
Next:China’s New Battery Consumption Tax: A Big Win for Lithium-ion Batteries