Core Viewpoint - Tianhua New Energy plans to acquire 75% of Tianhua Times for 1.254 billion yuan, strengthening its partnership with CATL and integrating lithium resources [1][2][3] Group 1: Acquisition Details - Tianhua New Energy announced the acquisition of 75% equity in Tianhua Times from its actual controller Pei Zhenhua for 1.254 billion yuan [2] - The valuation of 100% equity in Tianhua Times is assessed at 1.672 billion yuan as of June 30, 2025 [2][4] - This transaction is classified as a related party transaction due to Pei Zhenhua's role as the controlling shareholder [2][3] Group 2: Historical Context and Financial Performance - Tianhua New Energy has a long-standing relationship with CATL, having acquired a 15% stake in CATL in 2015, which has yielded substantial returns [1][5][6] - The company experienced explosive growth from 2020 to 2022, with revenues increasing from 1.313 billion yuan in 2020 to 17.030 billion yuan in 2022, marking a growth rate of 401.26% [9][10] - However, the company has faced significant declines in revenue and net profit in 2023 and 2024, with 2023 revenue dropping by 38.54% to 10.468 billion yuan and net profit decreasing by 74.81% to 1.659 billion yuan [10][11] Group 3: Strategic Implications - The acquisition aims to integrate Pei Zhenhua's lithium resource investments into the listed company, reducing potential competition [3] - Tianhua Times focuses on overseas lithium resource investments, which aligns with Tianhua New Energy's strategic direction in the lithium battery materials sector [3][8] - The agreement includes a "depreciation compensation" clause, ensuring Pei Zhenhua compensates for any depreciation in the acquired equity before December 31, 2027 [3]

Core Viewpoint - Tianhua New Energy plans to acquire 75% equity of Suzhou Tianhua Times New Energy Industry Investment Co., Ltd. from its actual controller Pei Zhenhua for approximately 1.254 billion yuan, aiming to integrate upstream lithium resource investments into the listed company structure and eliminate potential competition risks [1][3][4]. Group 1: Acquisition Details - The acquisition involves Tianhua New Energy purchasing 75% of Suzhou Tianhua Times, which was previously held by Pei Zhenhua, for about 1.254 billion yuan [1][4]. - Prior to this transaction, Suzhou Tianhua Times had a shareholding structure where Pei Zhenhua held 75% (12 billion yuan) and Ningde Times held 25% (4 billion yuan) [3]. - After the acquisition, Tianhua New Energy will become the largest shareholder of Suzhou Tianhua Times [3]. Group 2: Financial Performance - Tianhua New Energy has experienced significant revenue declines, with revenues of 170.3 billion yuan in 2022, 104.7 billion yuan in 2023, and projected 66 billion yuan in 2024 [5]. - Net profits have also dropped sharply, from 8.8 billion yuan in 2022 to a projected 1.023 billion yuan in 2024, with a loss of 173 million yuan reported in the first half of 2025 [5]. - As of mid-2023, Tianhua New Energy had approximately 2.572 billion yuan in cash [3]. Group 3: Business Strategy - The acquisition is part of Tianhua New Energy's strategy to enhance its upstream lithium resource self-sufficiency, as it has been actively extending its operations into upstream sectors [5]. - The company has received approval from the Australian government to subscribe to shares of Liontown Resources, a leading lithium producer, indicating its commitment to expanding its resource base [5]. - Additionally, Tianhua New Energy's subsidiary has obtained mining rights for lithium-containing ceramic soil in Jiangxi Province, further supporting its resource development efforts [5].

Core Viewpoint - Tianhua New Energy plans to acquire 75% equity of Suzhou Tianhua Times from its actual controller, Pei Zhenhua, for approximately 1.254 billion yuan, amid declining profits and a recent loss in the first half of the year [1][4][7]. Group 1: Acquisition Details - The acquisition constitutes a related party transaction and does not qualify as a major asset restructuring or a reverse listing [4]. - The 100% equity of Suzhou Tianhua Times was valued at approximately 1.672 billion yuan as of June 30, 2025, according to an asset appraisal report [4][5]. - The transaction price for the 75% stake is set at about 1.254 billion yuan, corresponding to a paid-in capital of 1.2 billion yuan [4][5]. Group 2: Financial Performance - Tianhua New Energy reported a net profit decline for two consecutive years, with a net loss of approximately 156 million yuan in the first half of 2025 [7]. - The company's revenue for the first half of 2025 was approximately 3.458 billion yuan, a decrease of 6.88% year-on-year [7]. - The main business segment, lithium battery materials, generated revenue of about 3.046 billion yuan, down 8.14% year-on-year, with a gross margin of 2.49%, a decline of 15.42% from the previous year [7]. Group 3: Company Background - Suzhou Tianhua Times, established in 2021, focuses on investment and development in lithium resources [5]. - Tianhua New Energy was listed on the Growth Enterprise Market in 2014 and engages in the research, production, and sales of new energy lithium battery materials, anti-static ultra-clean technology products, and medical devices [7].