Fulin Precision subsidiary secures 1.5 bn yuan prepayment from CATL

Jiangxi Shenghua New Materials Co., Ltd., a subsidiary of Fulin Precision Co., Ltd., recently signed a prepayment agreement with Contemporary Amperex Technology Co., Limited (CATL). Under this agreement, CATL will provide Jiangxi Shenghua with a total prepayment of 1.5 billion yuan. This amount is allocated to lock in the supply of lithium iron phosphate from Jiangxi Shenghua to CATL as per existing business agreements and to support Jiangxi Shenghua's efforts to build a more competitive raw materials infrastructure.

The prepayment will be disbursed in two tranches: 500 million yuan in September 2025 and 1 billion yuan in November 2025. Jiangxi Shenghua has committed to using these funds exclusively for its lithium iron phosphate production lines and raw material construction, providing monthly usage reports to CATL. Starting March 2026, CATL is entitled to deduct and reclaim the prepayment from payments due to Jiangxi Shenghua for goods over a three-month period.

This agreement strengthens the long-term strategic and business cooperation between the two companies, enhancing Fulin Precision’s core competitiveness in lithium iron phosphate cathode materials. The company anticipates that successful implementation will lead to increased production capacity and sales orders, positively impacting its operating performance.