GANFENGLITHIUM (01772) announced that the company and the placing agent entered into a placing agreement on August 25, 2025. Subject to the terms and conditions set out in the placing agreement, the company agrees to issue and allot 40.0256 million H share placing shares at the placing price, while the placing agent has agreed on a several (but not joint or joint and several) basis to act as the company's agent to procure placees to subscribe for the placing shares at the placing price on a best efforts basis. The placing shares will be allotted and issued under the general mandate. The placing shares represent approximately 9.02% of the enlarged issued H shares and approximately 1.95% of the total enlarged issued share capital after allotment and issuance of the placing shares. The placing price of HK$29.28 per placing share represents a discount of approximately 5.49% to the closing price of HK$30.98 per H share as quoted on the Stock Exchange on August 25, 2025. Assuming all placing shares are fully placed, the gross proceeds from the placing are expected to be approximately HK$1.172 billion, with net proceeds (after deducting commission and estimated expenses) expected to be approximately HK$1.169 billion. The company intends to use the placing proceeds for loan repayment, capacity expansion and construction, supplementing working capital, and general corporate purposes.

The company (as issuer) and the manager entered into a subscription agreement on August 25, 2025. Subject to the terms and conditions contained in the subscription agreement, the manager agrees to subscribe and pay for, or procure subscribers to subscribe and pay for, bonds to be issued by the company with a total principal amount of HK$1.37 billion. The bonds may be converted into H shares under the circumstances set out in the terms and conditions, with an initial conversion price of HK$33.67 per H share (subject to adjustment). The initial conversion price of HK$33.67 per H share represents a premium of approximately 8.68% over the last closing price of HK$30.98 per H share as quoted on the Hong Kong Stock Exchange on August 25, 2025 (being the trading day on which the subscription agreement was signed), and a premium of approximately 6.48% over the average closing price of HK$31.62 per H share as quoted on the Hong Kong Stock Exchange for the five consecutive trading days up to and including August 25, 2025. Upon completion of the bond issuance, after deducting the manager's commission and other estimated expenses payable in connection with the bond issuance, the net proceeds from the bond subscription will be approximately HK$1.346 billion. The company intends to use the subscription proceeds for loan repayment, capacity expansion and construction, supplementing working capital, and general corporate purposes. The bonds are intended to be listed on Vienna MTF operated by the Vienna Stock Exchange. The company will apply to the Vienna Stock Exchange for the listing of the bonds.

The board of directors believes that both the placing and bond issuance will help the company strategically utilize resources and opportunities in domestic and international capital markets, enabling the company to access international capital markets through a cost-effective financing platform, thereby promoting the company's sustainable and stable growth. In particular, the placing is expected to diversify and broaden the company's shareholder base and increase the free float of H shares, thereby enhancing market liquidity and trading volume. Meanwhile, the bond issuance will further supplement the company's existing funding sources, contributing to a more balanced and optimized capital structure, thereby strengthening the company's financial position, improving capital efficiency, and enhancing the company's overall competitiveness.