Shengxin Lithium drops H-share plan, secures A-share private placement

Shengxin Lithium Group Co., Ltd. announced on October 31, 2025, the termination of its H-share issuance and listing on The Stock Exchange of Hong Kong Limited. This decision, approved by the eighth board of directors, was based on strategic development and shareholder interests and will not have a material impact on the company's operations.

Concurrently, Shengxin Lithium is proceeding with a private placement of A-shares, targeting Shenzhen Chengtun Group Co., Ltd., CALB Co., Ltd., and Huayou Holding Group Co., Ltd. These strategic investors will subscribe to a total of 187,573,269 A-shares at a price of CNY 17.06 per share, raising up to CNY 320,000.00. The net proceeds will be used to supplement working capital and repay debts.

This A-share issuance is expected to optimize the company's capital structure, reduce financial costs, and enhance its profitability and risk resistance. The share placement is considered a related-party transaction and is subject to shareholder approval. The company has also committed to measures to mitigate any dilution of immediate returns.