Core Viewpoint - The company, Shengxin Lithium Energy, plans to acquire a 21% stake in Sichuan Qicheng Mining Co., Ltd. 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 conducted through Shengxin Lithium Energy's wholly-owned subsidiary, Sichuan Shengtun Lithium Industry Co., Ltd. [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's total assets are valued at 1.951 billion yuan, with an assessed value of 7.466 billion yuan, reflecting a 282.62% increase [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 Energy reported a net loss of 841 million yuan for the first half of 2025, and the acquisition may exert short-term pressure on the company's cash flow [4] Group 3: Risks and Considerations - The transaction is subject to approval from the company's shareholders due to the involvement of related parties, which introduces uncertainty [3] - There is a risk of the transaction being terminated if the company cannot make timely payments as agreed [4] - The mining industry is characterized by long construction cycles and significant capital requirements, which may lead to funding shortages or cost overruns [5]

Core 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]

Core Viewpoint - The company plans to acquire a 21% stake in Sichuan Qicheng Mining Co., Ltd. for 1.456 billion yuan, which will increase its ownership in Qicheng Mining to 70% and consolidate its financials with its subsidiary Huirong Mining [1] Group 1 - The acquisition will allow the company to control the Huirong Mining, which holds mining rights for the Muzhong lithium mine, known for its high lithium content [1] - The Muzhong lithium mine has a confirmed Li2O resource of 989,600 tons with an average grade of 1.62%, making it one of the highest-grade lithium mines in Sichuan [1] - The production capacity of the Muzhong lithium mine is 3 million tons per year, and the company is actively advancing its development [1] Group 2 - Following the acquisition, the company aims to leverage its experience in developing lithium projects in high-altitude areas of Sichuan to enhance its lithium resource self-sufficiency [1] - The company intends to establish a stable and reliable resource supply system through this acquisition [1]

Core Viewpoint - The company plans to acquire a 21% stake in Sichuan Qicheng Mining Co., Ltd. for 1.456 billion yuan, which will increase its ownership in Qicheng Mining to 70% and consolidate its financials with its subsidiary Huirong Mining [1] Group 1: Acquisition Details - The acquisition will be conducted through the company's wholly-owned subsidiary, Sichuan Shengtun Lithium Industry Co., Ltd. [1] - After the acquisition, the company will control both Qicheng Mining and its subsidiary Huirong Mining, which holds mining rights for the Muzhong Lithium Mine [1] Group 2: Resource and Production Information - The Muzhong Lithium Mine has a confirmed Li2O resource of 989,600 tons with an average grade of 1.62%, making it one of the highest-grade lithium mines in Sichuan [1] - The production capacity of the Muzhong Lithium Mine is 3 million tons per year, and development is actively progressing [1] Group 3: Strategic Implications - The acquisition will enable the company to leverage its experience in developing lithium mining projects in high-altitude regions of Sichuan [1] - The company aims to significantly enhance its lithium resource self-sufficiency and establish a stable and reliable resource supply system [1]