Graphex Group (HKG:6128) said its Anhui subsidiary signed an equipment purchase agreement worth 42.3 million yuan to acquire an intelligent carbon coating processing line for its new graphite anode materials facility in Xuancheng, according to a Tuesday Hong Kong bourse filing.

Shares of the firm were down nearly 2% in Wednesday afternoon trade.

The new line will support production of 15,000 tonnes of high-quality natural graphite anode material annually for China's lithium-ion battery market.

Construction of the facility began on Monday, with production expected to start before the end of the second quarter of 2026, the company said.

The group also said it is sponsoring two research projects with Hong Kong's Nano and Advanced Materials Institute (NAMI) to develop new carbon coating processes and silicon-based anode materials.