* ST Rongjie plans to raise an additional 330 million from LV Xiangyang, one of the real controllers, for lithium ore selection projects.

SMM: on the evening of November 24th, * ST Rongjie disclosed the pre-plan of non-public offering. The target of this issue is LV Xiangyang, one of the actual controllers of the company, the issue price is 18.74 yuan per share, and the total amount of funds raised does not exceed 330 million yuan. After deducting the issuance expenses, the net funds raised will be used for 2.5 million tons / year lithium ore selection project.

According to the issuance plan, the total investment of the project is expected to be 992 million yuan, with an investment of 330 million yuan using the funds raised, and the proposed construction period is one year. 2.5 million tons / year lithium ore selection project will be built mainly in the green lithium industry centralized processing zone planned in Kangding City, Ganzi Prefecture, Sichuan Province.

* ST Rongjie said that the company's main business is related to the field of new energy materials, with lithium materials industry chain as the main body, including lithium mining, lithium salt and deep processing, nickel-cobalt lithium wet smelting and deep processing, lithium battery cathode materials, lithium equipment and other business sectors. This investment project will expand the company's upstream resource output and expand the company's production and sales scale.

Rongda Lithium Industry, as the company's lithium mining and separation business platform, the Methyl Carbonite vein 134is a pegmatite spodumene deposit with large resource reserves and the best mining conditions in China, and it is a rare high-quality lithium ore resource in China. at present, Rongda lithium has formed an annual mining capacity of 1.05 million tons / year. The company has signed the Kangding green lithium industry investment agreement with the Kangding municipal government, and will continue to actively promote a series of projects such as 2.5 million tons / year lithium ore selection project. High-quality lithium ore resources are an important guarantee for the successful implementation of the project.

It is reported that Rongda Lithium Mine resumed production in June 2019. Taking advantage of the favorable opportunity of mine resumption, the company has completed the lithium mining and processing expansion project and will actively promote the construction of Chengdu Rongjie Lithium Industry Lithium Salt Project, give full play to the cooperative advantages of upstream and downstream industrial chains, enhance the company's overall competitive advantage, maintain stable and sustainable development, and achieve breakthroughs in the operating capacity of subsidiaries and the company's front-line customers. Improve the company's profitability and performance.

It is understood that in addition to the industrial layout of lithium resources, * ST Rongjie has been laid out in terms of battery-grade lithium salts, cathode materials and precursors:

In terms of battery-grade lithium salt industry, * ST Rongjie has a lithium smelting base each in Dujiangyan City and Qionglai City under the jurisdiction of Chengdu. Together, the two bases cover an area of about 600mu and produce 35000 tons of battery-grade and high-purity lithium carbonate / lithium hydroxide per year. Chengdu Rongjie Lithium Technology Co., Ltd. in Qionglai City produces about 30,000 tons of lithium carbonate / lithium hydroxide, which is by far the largest lithium salt factory in the world.

In terms of cathode material precursors, * ST Rongjie has established a production base of lithium battery cathode material precursors in Chaohu Economic Development Zone in Hefei and Chengdu Chenggan Industrial Park in Chengdu, with an area of 250mu and 450mu respectively, with a total annual output of 8000 tons of cobalt tetroxide and 10,000 tons of nickel, cobalt and manganese hydroxide ternary raw materials.

In terms of cathode materials, * ST Rongjie has established a lithium battery cathode material production base in Hefei High-tech Development Zone and Qionglai City in Chengdu, with an area of about 330mu, with a total annual output of 10, 000 tons of lithium battery cathode materials, 15000 tons of nickel-cobalt manganate and 30, 000 tons of lithium iron phosphate.