Weihua to boost lithium resource control with Qicheng Mining stake

Guangdong Weihua Corp. (Weihua) announced that its wholly-owned subsidiary, Sichuan Shengtun Lithium Industry Co. (Shengtun Lithium), plans to acquire a 21% equity stake in Sichuan Qicheng Mining Co. (Qicheng Mining) for 1.456 bn yuan. Following the acquisition, Weihua will directly hold 70% of Qicheng Mining, which, along with its controlling subsidiary Yajiang County Huirong Mining Co. (Huirong Mining), will be consolidated into Weihua’s financial statements. Huirong Mining holds the mining rights for the Murong Lithium Mine, with a proven Li2O resource of 989,636 tons and an average grade of 1.62%. The mine is currently under development to achieve an annual production capacity of 3m tons.

The acquisition will increase Weihua's joint investment with Xiamen Chuangyi Shengtun New Energy Industry Investment Partnership, an affiliated party, triggering a related party transaction. The deal, which does not constitute a major asset reorganization, was approved by Weihua's eighth board of directors at its twenty-second meeting on September 22, 2025. The transaction requires approval from the shareholders' meeting.

The acquisition price is based on an asset appraisal conducted by Sichuan Shanhe Asset Appraisal Co. as of August 31, 2025, which valued Qicheng Mining's total shareholder equity at 6.93 bn yuan. This valuation is higher than previous appraisals due to increased lithium resource reserves, secured mining permits, and optimized mining plans. The acquisition, to be funded by Weihua's own and borrowed capital, is expected to create a temporary cash outflow but will not materially impact the company's normal operations, financial stability, or liquidity.