Enlarge and strengthen Lithium Salt Industry Shengxin Lithium Energy subsidiary Suining Sheng received 200 million yuan of additional capital

On December 28, Shengxin LiNeng announced that the company and Suining Shengxin Equity Investment Center (Limited Partnership) (hereinafter referred to as "Shengxin Equity Investment") respectively increased capital to Suining Shengxin Lithium Industry Co., Ltd. (hereinafter referred to as Suining Shengxin Lithium Industry Co., Ltd.), a wholly owned subsidiary of the company, of which the company increased its capital by RMB 120 million and Shengxin equity investment by RMB 80 million. Used for investment in Suining Shengxin construction, purchase of equipment or other daily production and operation.

It is reported that Suining Shengxin is mainly engaged in production, processing and sales: lithium chloride, lithium carbonate; research and development, production and sales of lithium-ion batteries; sales: mineral products; import and export of goods.

After the completion of this capital increase, Suining Shengxin's registered capital has increased from 50 million yuan to 250 million yuan, the company's shareholding proportion of Suining Shengxin has correspondingly decreased from 100% to 68%, and Shengxin equity investment holds 32% of Suining Shengxin's equity.

As of September 30, 2020, Sui Ningsheng's total assets were 22.6634 million yuan, total liabilities were 4.4235 million yuan, and net assets were 18.24 million yuan. The operating income in the first three quarters of 2020 was 2.5664 million yuan, and the net profit was-177700 yuan (the above data have not been audited).

Sheng Xin LiNeng said that after the completion of this capital increase, it will expand the company's overall production capacity and output of lithium hydroxide, promote the development of the lithium power industry in Shehong City, Sichuan Province, and at the same time help to enhance the company's overall strength and expand downstream customers. establish long-term strategic cooperation with high-quality customers, expand and strengthen the lithium salt industry, and further expand and enhance the company's lithium power new energy materials business scale. In line with the company's strategic planning and business development needs.

In addition, Sheng Xin LiNeng plans to work with wholly-owned subsidiary Suining Shengxin, Sichuan Science and Technology Achievement Transformation Equity Investment Fund Partnership (Limited Partnership) (hereinafter referred to as "Science and Technology Achievement Fund"), Sichuan intellectual property Operation Equity Investment Fund Partnership (Limited Partnership) (hereinafter referred to as "intellectual property Fund"), Shehong Xincheng Investment and Development Co., Ltd. (hereinafter referred to as "Xincheng Investment") signed the Convertible debt Investment Agreement.

The Science and Technology Achievement Fund and the intellectual property Fund respectively intend to provide loans of RMB 20 million to each of Suining Shengxin in the form of convertible debt rights, totaling RMB 40 million, the loan period is from the date on which the Science and Technology Achievement Fund and the intellectual property Fund provide loans to Suining Shengxin until December 31, 2022.

The announcement shows that the convertible debt investment funds will be applied to the new production plant, equipment purchase, production liquidity and interest reserves.

According to the latest data from SMM, the price of lithium salt was raised by 2000 yuan / ton last week, and the price of lithium hydroxide recovered. In addition, the recent turnover of some new production lines has improved significantly and has begun to go to the warehouse gradually. Orders for the first quarter were gradually signed in late December, the quotation was raised, and the transaction price is expected to rise slightly. Last week, the price of SMM battery-grade lithium hydroxide (coarse particles) was 4.6-51000 yuan / ton, up 1000 yuan / ton from the week before last week.

It is worth noting that on November 5, Weihua Co., Ltd. announced that in order to better match the company name with the main business, highlight the characteristics of the company's main business, and at the same time enable investors to understand the company more clearly and intuitively, and establish a new corporate image of the company, the company's securities abbreviation has been changed to Shengxin LiNeng.

On November 11, Sichuan Shengtun Lithium Industry Co., Ltd. (hereinafter referred to as "Shengtun Lithium Industry"), a wholly owned subsidiary of Shengxin Lithium Energy, recently signed an "off-take agreement" with Yinhe Lithium Australia Co., Ltd. (hereinafter referred to as "Galaxy Lithium"). The products Shengtun Lithium purchased from Yinhe Lithium Industry this time are spodumene concentrates, and the minimum quantity purchased during each contract year is 60000 tons. 15000 tons will be delivered in quarterly batches in each contract year, with a cooperation period of 3 years.

On November 17th, based on the daily business development needs of Shengtun Lithium Industry, Shengxin Lithium can increase its capital by RMB 330 million to the company's wholly-owned subsidiary Shengtun Lithium Industry in the form of cash contribution. After the completion of this capital increase, the registered capital of Shengtun Lithium Industry has increased from 220 million yuan to 550 million yuan.