The subsidiary received Contemporary Amperex Technology Co.Limited(300750) additional investment of 144 million yuan Mianyang Fulin Precision Co.Ltd(300432) : the two sides will deepen cooperation in the future

The subsidiary of Mianyang Fulin Precision Co.Ltd(300432) (300432. SZ), which is vigorously promoting the expansion of lithium iron phosphate production, has obtained additional investment from the strategic partner Contemporary Amperex Technology Co.Limited(300750) (300750. SZ).

On February 16, Mianyang Fulin Precision Co.Ltd(300432) announced that the company and its subsidiary Jiangxi sublimation recently signed supplementary agreements with Contemporary Amperex Technology Co.Limited(300750) and Changjiang chendao. According to the agreement, Contemporary Amperex Technology Co.Limited(300750) plans to further increase the capital of Jiangxi sublimation, with an amount of 144 million yuan. After the capital increase is completed, Contemporary Amperex Technology Co.Limited(300750) will increase its shareholding in Jiangxi sublimation from the current 2.96% to 20%.

“This capital increase is the further implementation of the preliminary agreement between the two sides.” Relevant people told the reporter of the daily economic news that the capital increase is also conducive to further strengthening and enhancing cooperation between the two sides. According to the announcement, after this capital increase, the registered capital of Jiangxi sublimation will increase to 820 million yuan, and the capital increase will be mainly used to speed up the construction of Jiangxi sublimation’s lithium iron phosphate project in Shehong, Sichuan.

obtained Contemporary Amperex Technology Co.Limited(300750) additional 144 million yuan investment

After obtaining a capital increase of 20 million yuan in 2021, Jiangxi Shenghua, a subsidiary of Mianyang Fulin Precision Co.Ltd(300432) , recently obtained an additional 144 million yuan investment of Contemporary Amperex Technology Co.Limited(300750) . On February 16, Mianyang Fulin Precision Co.Ltd(300432) announced the above matters.

According to Mianyang Fulin Precision Co.Ltd(300432) , the Contemporary Amperex Technology Co.Limited(300750) capital increase is a further implementation of the original agreement. However, the reporter of the daily economic news noted that the progress of the Contemporary Amperex Technology Co.Limited(300750) capital increase still exceeded the expectations of the outside world.

In January 2021, Mianyang Fulin Precision Co.Ltd(300432) entered into a cost framework agreement with Contemporary Amperex Technology Co.Limited(300750) and Changjiang chendao on jointly increasing the capital of Jiangxi shenghuada. According to the original agreement, Mianyang Fulin Precision Co.Ltd(300432) will increase the capital by 272 million yuan, Contemporary Amperex Technology Co.Limited(300750) will directly increase the capital by 20 million yuan, and has the right to choose to increase the capital by 44 million yuan by itself or designate a third party. In addition, Contemporary Amperex Technology Co.Limited(300750) also has the option to further increase the capital of Jiangxi sublimation by 100 million yuan within 18 months from the date of delivery of the first capital increase.

In August 2021, Contemporary Amperex Technology Co.Limited(300750) directly held 2.96% equity of Jiangxi sublimation after the first capital increase of 20 million yuan was in place and the industrial and commercial change was completed. A few months later, Contemporary Amperex Technology Co.Limited(300750) began to exercise the option.

According to the latest supplementary agreement signed between Mianyang Fulin Precision Co.Ltd(300432) and Contemporary Amperex Technology Co.Limited(300750) , the capital increase of 44 million yuan by the designated party of Contemporary Amperex Technology Co.Limited(300750) in the original agreement will be implemented by Contemporary Amperex Technology Co.Limited(300750) . In addition, with the exercise of the optional capital increase right of 100 million yuan, a total of 144 million yuan will be added to Contemporary Amperex Technology Co.Limited(300750) .

After completing the additional investment of 144 million yuan, Contemporary Amperex Technology Co.Limited(300750) will become the second largest shareholder of Jiangxi sublimation, with a shareholding ratio of 20%. However, Mianyang Fulin Precision Co.Ltd(300432) will still have an absolute controlling stake in Jiangxi sublimation, with a shareholding ratio of 60%.

the two sides will further deepen cooperation

In the latest announcement, Mianyang Fulin Precision Co.Ltd(300432) also explained the purpose of the additional 144 million yuan investment of Contemporary Amperex Technology Co.Limited(300750) : the capital increase will be mainly used to further accelerate the construction of Jiangxi Shenghua’s lithium iron phosphate project in Shehong, Sichuan.

At present, Mianyang Fulin Precision Co.Ltd(300432) is vigorously arranging the expansion of lithium iron phosphate production. In July 2021, the company announced that it planned to invest in a new lithium iron phosphate cathode material project with an annual output of 250000 tons. The first phase of the project is 60000 tons of lithium iron phosphate cathode material project. Jiangxi Shenghua plans to invest 1.06 billion yuan to build the first phase of the project in Shehong, Sichuan.

How is the project going after a few months? In mid January this year, Mianyang Fulin Precision Co.Ltd(300432) said in response to investors’ questions that the 50000 ton lithium iron phosphate cathode material project of the company located in Shehong base, Sichuan has been officially put into operation, the production capacity has been released in an orderly manner and mass supply has begun. Now, Jiangxi sublimation has received Contemporary Amperex Technology Co.Limited(300750) additional investment, and the construction progress of new capacity projects may be further accelerated.

In addition, according to the reporter of the daily economic news, after obtaining the investment of Contemporary Amperex Technology Co.Limited(300750) , Jiangxi Shenghua has been supplying Contemporary Amperex Technology Co.Limited(300750) in batches. “Now most of our new lithium iron phosphate production is mainly supplied to Contemporary Amperex Technology Co.Limited(300750) , and the cooperation between the two sides is very stable.” Relevant people told reporters that the two sides will further deepen cooperation in the future.

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