Soton Development announced that the company, through its wholly-owned subsidiary Gansu Sotong Shengyuan Carbon Materials Co., Ltd. ("Sotong Shengyuan"), will invest in the construction of a 500,000-ton integrated lithium-ion battery cathode material project in Jiaobei Industrial Park, Jiauguan City, Gansu Province in 2022, and acquire 94.9777% of the shares of Foshan Xinyuan Electronics Co., Ltd. through the issuance of shares and payment of cash.

Taking this as an opportunity, it officially entered the lithium-ion battery cathode material industry. At present, the first phase of the 500,000-ton integrated lithium-ion battery cathode material project, with a capacity of 25,000 tons, has been completed and put into production. The company plans to supplement and perfect the production line of the first phase of the 500,000-ton integrated lithium-ion battery cathode material project and invest in the construction of the second phase of the 500,000-ton project, with a total investment of about 2.475 billion yuan.