Jiangsu Lopal Tech. Group Co., Ltd. (“LOPAL TECH”) will inject RMB 1.40 billion into its 61.88%-owned lithium iron phosphate (LFP) cathode subsidiary Changzhou Liyuan New Energy Technology Group. The cash contribution will raise LOPAL TECH’s equity interest in Changzhou Liyuan to 68.69% and increase the unit’s registered capital by RMB 194.63 million to RMB 1.09 billion, with the balance of RMB 1.21 billion credited to capital reserve. Other existing shareholders—including CATL’s subsidiary Ningbo Meishan and several investment funds—have waived their pre-emptive rights.
The consideration was set after arm’s-length negotiations, referencing an independent valuation that pegged Changzhou Liyuan’s 100% equity at RMB 6.10 billion as of 30 November 2025. The valuation used a discounted cash-flow method validated by Moore CPA Limited.
Proceeds stem from LOPAL TECH’s May 2026 private placement of 93.12 million A shares; RMB 800 million will fund Shandong Liyuan’s 110,000-ton high-performance phosphate iron-based cathode project, while RMB 600 million will support Hubei Liyuan’s 85,000-ton project. LOPAL TECH will also extend interest-bearing intra-group loans equivalent to interest earned on the placement funds.
The transaction is classified as a discloseable and connected transaction under Hong Kong Listing Rules, requiring independent shareholders’ approval. Executive Directors Shi Junfeng, Shen Zhiyong and Zhang Yi, and non-executive Director Zhu Xianglan—each linked to minority shareholders of Changzhou Liyuan—have abstained from voting at the Board level.
Additional agenda items for the forthcoming extraordinary general meeting include: • Extending the 2026 Hong Kong share register book-closure period to a maximum of 60 days (from 30 days) to enhance corporate flexibility; • Updating the Articles of Association to reflect the enlarged registered capital to RMB 791.11 million following the June 2026 placement of 15 million H shares.
The EGM will be held on 3 September 2026 in Nanjing. The Hong Kong share register will close from 31 August to 3 September; shareholders must lodge transfer documents by 4:30 p.m. on 28 August to qualify for voting.