Snowsky Salt Industry Group Co.,Ltd. (SH: 600929) has recently disclosed a major asset restructuring plan, proposing to acquire control of Hebei Kuntian New Energy Co., Ltd. (Kuntian New Energy) through a combination of share issuance and cash payment. This transaction is a textbook example of a "minnow swallowing a whale," where the listed company's current market capitalization is under 10 billion yuan, while the third-party valuation for Kuntian New Energy stands at a substantial 12.922 billion yuan.
This significant disparity in valuation highlights two converging narratives: a traditional enterprise seeking transformation amid core business pressure, and a new energy company, grappling with industry overcapacity and a narrowing IPO window, opting for a backdoor listing to provide an exit for its investors.
The "Small Cart, Big Horse" Dynamic
The most striking feature of this deal is its sheer size mismatch. Prior to the trading halt, Snowsky Salt's total market value was approximately 9.9 billion yuan, whereas Kuntian New Energy's valuation is about 30% higher. The company's shares have been suspended since August 31st, with the halt expected to last no more than ten trading days. The announcement also confirmed that this transaction will not lead to a change in the actual controller and does not constitute a backdoor listing.
Kuntian New Energy is a leading player in the artificial graphite anode sector. Established in 2018, its roots trace back to Huaiyang Carbon, which was founded in 2000, giving it over two decades of experience in the carbon industry. The company specializes in the R&D, production, and sale of anode materials for lithium-ion batteries, with applications spanning power batteries, energy storage, and consumer electronics. It operates three major production bases in Hebei, Sichuan, and Yunnan, with a total integrated capacity exceeding 210,000 tons. In the first seven months of 2026, its anode sales reached 125,600 tons, ranking sixth in the industry.
On the technology front, the company implemented an industry-first continuous graphitization furnace technology in 2024, which, combined with its existing box-type furnace process, provides significant cost and energy consumption advantages. From a capital perspective, Kuntian New Energy has already completed several heavyweight financing rounds, raising over 1 billion yuan in a strategic round in October 2022 led by SK China, Sinopec Capital, and CICC Capital, followed by a Pre-IPO round of over 2 billion yuan in January 2023. These rounds brought in more than ten institutional investors, including C&D Group, SANY Group, and Fosun Creative. The company filed for IPO guidance with the Hebei Securities Regulatory Bureau in December 2023, making an independent listing its primary capital markets goal.
However, the company's share price showed unusual activity before the announcement. On August 28th, Snowsky Salt's stock price hit the daily limit up in early trading, with turnover exceeding 300 million yuan, signaling strong main capital inflow. Given that the target's valuation far exceeds the listed company's market cap and the news of the acquisition is a major piece of inside information, the pre-announcement limit-up has raised questions about potential information leaks and "rat trading," making the compliance of subsequent information disclosure a key focus for regulators and investors alike.
A Symbiotic Deal: Strategy Meets Necessity
This acquisition is a mutual fit between the transformation needs of a traditional industry and the exit demands of new energy capital. For Snowsky Salt, a regional salt industry leader dealing in edible salt, industrial salt, and chemical products, venturing into new energy is a necessary step amid its struggling core business. Financial reports show that in 2025, the company's revenue was 5.421 billion yuan, down 9.96% year-on-year, while net profit attributable to shareholders plunged 74.59% to just 77 million yuan. In the first half of 2026, revenue fell another 2.89% to 2.658 billion yuan, and net profit slipped 9.23% to 79.18 million yuan, indicating no immediate improvement.
Snowsky Salt's foray into new energy is not new. In 2022, it invested in Mettler New Materials alongside its controlling shareholder, Hunan Salt Industry Group, initially acquiring a 20% stake. In December 2025, it increased its stake to 61% by purchasing an additional 41% for 261 million yuan, gaining control. Mettler New Materials, which focuses on lithium cobalt oxide and ternary cathode materials, now needs the anode materials expertise that Kuntian New Energy brings to complete its portfolio.
For Kuntian New Energy, agreeing to be acquired is a pragmatic choice in the face of a stalled IPO. The lithium battery anode materials sector is experiencing significant overcapacity and intense price wars, pressuring profitability. With stricter IPO scrutiny for such companies, the timeline and uncertainty for an independent listing have grown substantially. Therefore, selling to a listed company offers a more efficient exit for its more than 3 billion yuan in accumulated financing from over a dozen investors. Moreover, this heavy-asset industry requires continuous capital for capacity expansion and technological upgrades, and being part of a listed entity provides more stable direct financing channels to weather industry cycles.
As this acquisition is still in the planning stage, key details such as the final transaction price, share issuance ratio, and performance commitments have yet to be disclosed. The significant valuation gap, the challenges of cross-industry integration, and the ability to deliver on future performance promises will all be critical factors in determining the success of this "minnow swallows whale" deal.