Tiancheng Lithium Battery increases capital to promote cathode material project

 On December 5, Tianyuan Co., Ltd.(002386) issued an announcement stating that the company's wholly-owned subsidiary Yibin Tiancheng Lithium Battery New Materials Co., Ltd.(referred to as Tiancheng Lithium Battery) plans to introduce Yibin Luotou Asset Management Co., Ltd.(referred to as Luotou Assets) as a strategic investor. The capital increase amount is mainly used for Tiancheng Lithium Battery to invest and build a 50,000-ton/year new energy cathode material project.
  It is reported that Luo Investment Assets has newly subscribed for Tiancheng Lithium Battery by 80.8228 million yuan; Tianyuan Shares has newly subscribed for Tiancheng Lithium Battery by 219 million yuan. After the capital increase is completed, Tianyuan Shares will hold 79.79% equity of Tiancheng Lithium Battery, and Luotou Assets will hold 20.21% equity of Tiancheng Lithium Battery.
  Tianyuan Co., Ltd. stated that due to changes in the project planning around the company's 100,000-ton/year lithium iron phosphate project land, the land originally planned for project construction did not meet the requirements of the company's lithium battery material project for magnetic foreign matter indicators. After consultation and demonstration between the company and the Nanxi District Government, Luo Investment Assets owns land and other assets that are in line with the construction and production of the project. In order to speed up the construction of the project, it is planned that Luo Investment Assets will increase its capital based on the evaluation of the land use rights and other assets.
  Tianyuan said that with the rapid rise of the new energy and smart car industries in Yibin City, the Yibin lithium battery industry will usher in huge development opportunities, and the construction of cathode material projects will be strongly connected with the existing strategic emerging industries in Yibin City. Tiancheng Lithium Battery is one of the important carriers of the company's new energy industry layout. Investing in the construction of new energy cathode materials is of great significance to the company's overall strategic development.