Zhong Guo Ji Jin Bao·2025-09-22 15:28Core Viewpoint - Shengxin Lithium Energy plans to acquire a 21% stake in Qicheng Mining for 1.456 billion yuan, which will increase its ownership in Qicheng Mining to 70% and consolidate its financials [1] Group 1: Transaction Details - The acquisition will be executed by Shengxin Lithium's wholly-owned subsidiary, Sichuan Shengtun Lithium Industry [1] - Prior to the transaction, Shengtun Lithium and Taicheng Mining held 49% and 51% stakes in Qicheng Mining, respectively [2] - Qicheng Mining's subsidiary, Huirong Mining, holds a mining license for the Muzhong Lithium Mine, which has a confirmed Li2O resource of 989,600 tons and an average grade of 1.62% [2] Group 2: Financial Implications - Qicheng Mining has total assets valued at 1.951 billion yuan and an assessed value of 7.466 billion yuan, reflecting a 282.62% increase in value [4] - The net asset value of Qicheng Mining is 1.418 billion yuan, with an assessed value of 6.934 billion yuan, indicating a 388.77% increase [4] - Shengxin Lithium reported a net loss of 841 million yuan for the first half of 2025, indicating potential short-term cash flow pressure due to the high transaction amount [4] Group 3: Debt and Investment Considerations - Qicheng Mining has external borrowings exceeding 1.051 billion yuan, which Taicheng Mining has committed to repay upon receipt of the acquisition payment [2] - The acquisition will involve an increase in joint investments with related party Xiamen Chuangyi, which may require shareholder approval due to its classification as a related transaction [3]