On the evening of November 19th, Bank of China Cashmere Industry (000982) announced that the company intends to sign an equity transfer agreement with Sichuan Xinruiheng Lithium Energy Technology Co., Ltd. (referred to as "Xinruiheng") and its shareholder Chengdu Chongxin Xinda Industrial Co., Ltd. (referred to as "Chongxin Xinda"). Chongxin Xinda will hold 100% equity interest in Xinruiheng (corresponding to 50 million yuan in registered capital). The paid-in registered capital is 0 yuan) and transferred to the company at the price of 0 yuan. After the completion of the transfer, the company will actually pay the registered capital of 50 million yuan to Xin Ruiheng, and Xin Ruiheng will become a wholly-owned subsidiary of the company, and plan to use Xin Ruiheng as the main investor to invest in the construction of an annual production capacity of 80, 000 tons of lithium battery cathode material lithium iron phosphate project.

According to the announcement, Xin Ruiheng signed the "Investment Agreement of 80,000 tons / year Lithium Iron Phosphate Project" with the Management Committee of Deyang-Aba Eco-Economic Industrial Park on September 13, 2021. It is planned to invest 80,000 tons / year lithium battery cathode material lithium iron phosphate production line and supporting facilities in the de An eco-economic industrial park. At present, the project is carrying out environmental assessment, energy assessment, stability assessment, safety assessment, feasibility study and other preliminary work.

Judging from the content of the project, the Bank of China Cashmere Industry has an annual output of 80, 000 tons of lithium battery cathode material lithium iron phosphate project to build an annual production line of 80, 000 tons of lithium battery cathode material lithium iron phosphate and supporting facilities, with an estimated total investment of 2 billion yuan. all come from the company's own and self-raised funds. At the same time, the project plan will be implemented in stages, and the total construction cycle is expected to be 4 years. Among them, the first phase is planned to build a lithium iron phosphate production line with an annual output of 20,000 tons of lithium battery cathode material, and the first phase of construction is expected to be completed within 12 months from the date of starting conditions.

Official data show that the main business of the BOC cashmere industry is the trade of cashmere and cashmere products. It is worth noting that the company is optimistic about the long-term development opportunities of the new energy and new materials industry, and this investment is not the first time.

According to reports, in March this year, the Bank of China Cashmere Industry has cut into the new energy industry from lithium battery materials, and implemented the investment, production and operation of the lithium iron phosphate project for the cathode material of lithium battery and the graphitization processing project for negative material. In August 2021, the company increased the downstream application market of new energy and carried out the battery replacement business of two-round and three-round electric vehicles involved in the application of new energy, in order to widen and cooperate with the industrial chain and enhance the company's profitability. Improve the sustainable development ability of the company.

At present, the Bank of China Cashmere Industry has an annual production capacity of 4200 tons of lithium iron phosphate and the production and sales operation is good. The company said that while choosing an opportunity to expand the production and sales scale of lithium iron phosphate, Xin Ruiheng pays close attention to the layout of the 80,000 tons / year lithium iron phosphate cathode material of Xin Ruiheng in the new energy industry, especially in the German-Arab Ecological Economic Industrial Park. This acquisition is in line with the company's long-term development plan and development strategy, can make full use of the local rich raw material resources for deep processing, give full play to its location and policy advantages, and through the construction of a high-quality lithium-rich material production base, can give better play to the advantages of the industrial chain, fundamentally enhance the competitiveness of the company, and speed up the transformation and upgrading of the company.