Jiangxi sublimation won another 144 million yuan in Ningde era to increase capital to speed up the construction of Sichuan Lithium Iron Phosphate Project.

On the evening of February 16th, Fulin Seiko (300432) announced that recently, the company and its subsidiary Jiangxi sublimation New Materials Co., Ltd. (referred to as "Jiangxi sublimation") had friendly negotiations with Ningde Times (300750) and Changjiang Morning Road (Hubei) New Energy Industry Investment Partnership (Limited Partnership) (referred to as "Changjiang Morning Road"). On the basis of the Investment Agreement on Jiangxi sublimation New Materials Co., Ltd and the shareholders' Agreement on Jiangxi sublimation New Materials Co., Ltd., Ningde Times plans to further increase capital in Jiangxi sublimation. Subscribe for the same amount of registered capital increased by Jiangxi sublimation. After the completion of this capital increase, Ningde Times will hold a 20% stake in Jiangxi sublimation. Jiangxi sublimation's registered capital will increase to 820 million yuan.

The ownership structure of Jiangxi sublimation before and after this capital increase (unit / 10,000 yuan)

Looking back, on March 16, 2021, the board of directors of Fulin Seiko examined and passed the "motion on signing an investment agreement and introducing strategic investors for subsidiaries." Jiangxi sublimation, a subsidiary of the company, introduced strategic investors by way of capital increase, among which, the company subscribed for 272 million yuan of registered capital increased by Jiangxi sublimation, and 20 million yuan of registered capital increased by Jiangxi sublimation in Ningde era. Ningde Times designated party subscribed for Jiangxi sublimation increased registered capital of RMB 44 million, Changjiang Morning Road subscribed for Jiangxi sublimation increased registered capital of RMB 164 million; Within 18 months from the date of delivery of this capital increase, Ningde era has the right to choose to further increase the capital of Jiangxi sublimation by RMB 100 million.

On August 2, 2021, Fulin Seiko announced that the first phase of the company, Ningde era and Changjiang Morning Road Capital increase Jiangxi sublimation had been completed, and went through the relevant industrial and commercial change registration formalities, that is, the company subscribed for the target company to increase the registered capital of RMB 272 million, Ningde era subscribed for Jiangxi sublimation increased registered capital of RMB 20 million, Changjiang Morning Road subscribed for Jiangxi sublimation increased registered capital of RMB 164 million, The registered capital of Jiangxi sublimation has increased to 676 million yuan.

At this point, the agreement on the new phase of joint capital increase and the introduction of strategic investors has been signed. Fulin Seiko said that this move is aimed at further strengthening the long-term cooperation between the company and the Ningde era, giving full play to and integrating their respective resource advantages, in line with the relevant policies of the national new energy industry and the company's strategic development plan, which is conducive to promoting product technology upgrading, expanding business scale, and enhancing the company's position in the industry of new energy lithium battery cathode materials. Improve the company's overall competitiveness and sustainable profitability.

It is worth noting that in the risk tip, Fulin Seiko said that the "Supplementary Agreement" signed this time is a cooperation document for Jiangxi sublimation to further increase capital in the Ningde era, and is to further speed up the construction of Jiangxi sublimation Lithium Iron Phosphate Project in Sichuan Province.

In terms of project construction, according to Fulin Seiko a few days ago, the company put into construction an annual output of 50,000 tons of lithium iron phosphate project in Sichuan Province in February 2021, and by the end of 2021, the project with an annual production capacity of 50,000 tons of lithium iron phosphate cathode material has been officially put into production, and the production capacity has been released in an orderly manner and has begun to be supplied in batches. In July, 2021, the company planned to add 250000 tons of lithium iron phosphate cathode material project per year. On the same day, Jiangxi sublimation signed a "strategic cooperation agreement" on the project of investing 60, 000 tons of lithium iron phosphate cathode material in Shehong West International Technical Cooperation Industrial Park. The project is the first phase of the planned annual output of 250000 tons of lithium iron phosphate cathode material project, with an estimated total investment of 1.06 billion yuan. On September 15 of the same year, the project with an annual output of 60,000 tons of lithium iron phosphate cathode material was officially signed and is currently under construction.

In addition, in terms of cathode materials, Fulin Seiko also said that lithium ferromanganese phosphate products are relatively hot in the market. Jiangxi sublimation also has this product research and development plan, which is planned to be launched by the end of the year.