On February 3, Mianyang Fulin Precision Machining Co.,Ltd. announced that the company and CATL plan to jointly increase capital and expand shares in Jiangxi Shenghua New Material Co., Ltd., a subsidiary controlled by the company. Fulin intends to convert its Yuan 500 million debt claim against Jiangxi Shenghua into equity by subscribing to Yuan 407 million of the new registered capital. CATL intends to inject Yuan 747 million in cash to subscribe to Yuan 607 million of the new registered capital.
Upon completion of this capital increase, the company's equity stake in Jiangxi Shenghua will decrease from 79.5719% to 64.3653%, while CATL's shareholding will increase from 18.7387% to 33%.
This joint capital increase and share expansion in the subsidiary Jiangxi Shenghua represents a further deepening of the comprehensive strategic partnership between the company and CATL at the equity and capital cooperation level. It is expected to accelerate Jiangxi Shenghua's progress in several key areas, including enhancing high-end production capacity in the lithium iron phosphate (LFP) industry, developing and producing next-generation products, expanding internationally, upgrading the integrated supply chain, and advancing development in the energy storage market. This move will also strengthen Jiangxi Shenghua's capital base and overall competitiveness.
Edited by Cassie Li, lixiangying@mysteel.com
