The move is based on Gotion's controlling shareholder's recognition of the company's value and confidence in its continued rapid growth, according to an exchange announcement.

The controlling shareholder of Chinese power battery maker Gotion High-tech plans to increase its stake in the company, whose stock has continued to fall over the past few months.

Gotion's controlling shareholder, Nanjing Guoxuan Holding Group, plans to increase its stake in the company by no less than RMB 200 million yuan ($29 million) and no more than 300 million yuan within six months from March 13, according to a Shenzhen Stock Exchange announcement on March 12.

The share purchase plan will not set a price range, and the controlling shareholder of Gotion will increase its shareholding at an opportune time according to the fluctuation of the share price and the overall trend of the capital market, according to the announcement.

The move is based on Nanjing Guoxuan's recognition of Gotion's intrinsic value and investment value and confidence in the company and the continued rapid development of the global lithium battery market, the announcement said.

Prior to the increase, Nanjing Guoxuan held 9.6 percent of Gotion's shares, while its two concert parties, Li Zhen and Li Chen, held 5.81 percent and 1.6 percent of the shares, respectively.

Li Zhen is the chairman of Gotion and holds 80.69 percent of Nanjing Guoxuan's shares, according to data provider Tianyancha. Li Chen is Li Zhen's son, according to Gotion's third-quarter earnings report.

Nanjing Guoxuan and its concert parties together hold 17.01 percent of Gotion's shares and have promised not to reduce their holdings within six months after completing the increase, according to the announcement.

They will execute the plan through the means permitted by the Shenzhen Stock Exchange securities trading system by September 13, according to the announcement.

Gotion ranked fourth with a 3.58 percent share of the power battery installed base in China at 0.78 GWh in February.

While Gotion's share of the China power battery market has remained stable, its shares have continued to fall over the past few months and are currently down more than 40 percent from their recent highs in early July 2022.

As of Monday's close, Gotion was down 0.62 percent to RMB 28.92 in Shenzhen.

($1 = RMB 6.9014)