Core Viewpoint - Shengxin Lithium Energy has decided to terminate its plan to issue H-shares and list on the Hong Kong Stock Exchange, focusing instead on strategic partnerships with Zhongxin Innovation and Huayou Holding Group through A-share issuance to enhance industry chain cooperation and accelerate its goal of becoming a leading global lithium battery new material enterprise [1][2]. Summary by Sections Company Strategy - Shengxin Lithium Energy's board approved the termination of H-share issuance and listing, opting to deepen collaboration with strategic investors through A-share issuance [1]. - The company aims to raise up to 3.2 billion yuan to supplement working capital and repay debts [2]. Strategic Partnerships - Zhongxin Innovation is recognized as one of the fastest-growing power and energy storage battery companies globally, with a 22.7% year-on-year increase in power battery installation volume in the first half of 2025, ranking fourth globally and third domestically [2]. - Huayou Holding Group is a major supplier of lithium battery cathode materials and ternary precursor products [2]. Financial Performance - For the first three quarters of 2025, Shengxin Lithium Energy reported a revenue of 3.095 billion yuan, a year-on-year decrease of 11.53%, and a net loss attributable to shareholders of 752 million yuan, down 62.96% year-on-year [2]. - The company achieved profitability in the third quarter, attributed to rising lithium prices and shipments from its Indonesian factory, with expectations for gradual improvement in future profitability [2]. Production Capacity - Shengxin Lithium Energy has established lithium product production bases globally, with a total lithium salt production capacity of 137,000 tons per year and a metal lithium production capacity of 500 tons per year [4]. - Specific production capacities include: - Zhi Yuan Lithium Industry: 42,000 tons of lithium salt per year [4]. - Suining Shengxin: 30,000 tons of lithium salt per year [4]. - Shengxin Technology: 10,000 tons of lithium salt per year, with 5,000 tons already in production [4]. - Indonesia Shengtuo: 60,000 tons of lithium salt per year [4]. - Shengwei Lithium Industry: 3,000 tons of metal lithium per year, with 500 tons currently operational [4].

Group 1 - Shengxin Lithium Energy plans to raise up to 3.2 billion yuan through a private placement of A-shares, introducing CATL and Huayou Holding Group as strategic investors [1][2] - The raised funds will be used to supplement working capital and repay debts after deducting issuance costs [1] - CATL is ranked fourth globally and third domestically in terms of power battery installation volume for 2024, with a year-on-year growth of 16.6% [1] Group 2 - Huayou Holding Group has developed into a large investment group with subsidiaries involved in lithium battery materials, cobalt-nickel resource development, and recycling [2] - Huayou's subsidiary, Huayou Cobalt, is a major supplier of lithium battery cathode materials and ranks among the top in production and technology development [2] - The issuance will enhance collaboration with downstream leaders CATL and Huayou, accelerating the achievement of the strategic goal to become a leading global lithium battery new material enterprise [2]