Core Viewpoint - The company, Rike Chemical, is strategically shifting its project focus from a lithium battery electrolyte raw material project to a green low-carbon recycling project for waste rubber, which is expected to enhance its growth potential and safeguard shareholder interests [1][3]. Group 1: Project Overview - The original joint venture, Shandong Huinengda New Material Technology Co., Ltd., will transition from a 60,000 tons/year lithium battery electrolyte raw material project to a 100,000 tons/year waste rubber green low-carbon recycling project [1]. - The new project aligns with national green development strategies and is included in the encouraged category of the "Industrial Structure Adjustment Guidance Catalog" [1]. Group 2: Market and Resource Advantages - China is the world's largest producer and consumer of tires, generating the highest volume of waste tires globally, which provides a stable supply of raw materials for the new project [2]. - The project will utilize advanced and mature automated pyrolysis production lines, reducing technical risks and facilitating efficient production [2]. - The project is located in Dongying City, Shandong Province, a significant hub for the tire and carbon black industry, ensuring a strong customer base and reduced logistics costs [2]. Group 3: Economic Benefits - The first phase of the new project is expected to have a construction period of only one year, with full capacity operations anticipated in the second year [2]. - Compared to the original project, the new initiative promises a shorter construction cycle, quicker capital recovery, and stable cash flow, which will enhance the company's profitability [2]. Group 4: Strategic Adjustments - The company plans to relinquish its preferential purchase rights in Huinengda, resulting in a shared control of 64% of the joint venture by Naister and Hongxu, while Rike Chemical retains a 36% stake without control [3]. - Adjustments to voluntary commitments of the controlling shareholder have been made to ensure the company's financial safety and shareholder rights, including a buyback clause if the new project does not receive necessary permits within a specified timeframe [3].