LOPAL TECH (02465) announced that on May 11, 2026, the company, along with the other remaining shareholders of Changzhou Lithium Source, entered into a capital increase agreement with Changzhou Lithium Source (the company's non-wholly-owned subsidiary) and Series B investor Jinsha Industrial Investment. The agreement stipulates that the Series B investor will contribute 440 million yuan in cash to Changzhou Lithium Source to subscribe for approximately 61.17 million yuan of its registered capital. This subscription represents about 6.83% of Changzhou Lithium Source's enlarged share capital following the capital increase. The existing shareholders of Changzhou Lithium Source have agreed to waive their pre-emptive rights concerning this capital injection. Upon completion of the capital increase, the company's shareholding in Changzhou Lithium Source will decrease from approximately 66.42% to 61.88%. Consequently, Changzhou Lithium Source will remain a subsidiary of the company, and its financial results will continue to be consolidated into the company's financial statements. The capital increase agreement specifies that the entire 440 million yuan proceeds from the funding must be used strictly and solely for the purchase of machinery, assets, and raw materials related to the construction project of a 120,000-ton high-compaction lithium iron phosphate (LFP) production base in Jintan District, Jiangsu Province. Without the prior written consent of the Series B investor, the funds may not be used to repay or settle any debts or liabilities owed by Changzhou Lithium Source to any related parties, nor for any other expenditures unrelated to its primary business operations. The board of directors believes that entering into the capital increase agreement aligns with the group's overall strategic development plan and long-term interests, and is consistent with the proposed use of the remaining proceeds from the global offering as disclosed in the announcement regarding the change in the use of raised funds. Following the completion of the capital increase, the competitiveness of Changzhou Lithium Source will be strengthened, enabling it to better support the group's business plan for the Jintan high-performance lithium battery cathode material project, which is funded by the net proceeds from its global offering.