Wande's Losses Widen as Company Plans to Enter Battery Recycling and Auto Dismantling Through Acquisition

On March 3, Wanders issued an announcement stating its intention to acquire a 68% equity stake in Anhui Jiaqi Energy Technology Co., Ltd. (“Anhui Jiaqi”) from Wuhu Chery Resources Technology Co., Ltd., and a 68% equity stake in Wuhu Minghao New Materials Co., Ltd. (“Wuhu Minghao”) from Anhui Jiaxin Renewable Resources Co., Ltd., for a total transaction amount of RMB 31.95 million, thereby entering the battery recycling and automotive dismantling businesses.

Relevant media reports indicate that in May 2025, Rayzon International, a subsidiary of Chery Holding Group, acquired 100% of the equity in Wandesi Investment held by Liu Jun and Gong Jianrui—the former actual controllers of Wandesi—for RMB 413 million, thereby indirectly holding 28.88% of Wandesi’s shares and becoming its largest shareholder.

Vensys' performance forecast shows that in 2025, Vensys achieved a revenue of 506 million yuan, a decrease of 18.64% year-over-year, and a net profit attributable to shareholders of -114 million yuan, with the loss increasing by 54% compared to the previous year.

Notably, Wonders' intangible assets increased from 100 million at the end of 2021 to 710 million by the third quarter of 2025, while the company's debt ratio has risen to a new high of 51%.

According to the announcement, as of December 31, 2025, Anhui Jiaqi’s total assets amounted to RMB 12.2 million, total liabilities amounted to RMB 10.8 million, and the debt-to-asset ratio reached 88.5%.

Compared to Anhui Jiaqi, Wuhu Minghao's financial situation is more worrying. Audit reports show that the company's operating revenue for 2025 was 0 yuan, and the net profit was in a loss state.

Announcement shows that Anhui Jiaqi and Wuhu Minghao mainly engage in business of power battery recycling and scrap vehicle dismantling. The market prospects for power battery recycling and scrap vehicle dismantling are promising. Through the power battery recycling business, Wande Si can recover high-value resources such as lithium, cobalt, and nickel in the future. At the same time, by developing scrap vehicle dismantling, Wande Si can build a comprehensive recycling resource chain including steel, aluminum, plastic, and automotive parts.