Zhongjin Lingnan secures five-year lithium supply deal with Huayou

Shenzhen Zhongjin Lingnan Nonfemet Co., Ltd. has signed a "2026-2030 Cooperation Framework Agreement" with Huayou Holding Group, under which Huayou will purchase 221,400 metric tons of lithium salt products from Zhongjin Lingnan between 2026 and 2030. This is considered a related party transaction as Huayou Holding Group is expected to become a shareholder with over 5% stake after an upcoming share issuance. The agreement aims to strengthen long-term strategic partnerships and boost Zhongjin Lingnan's market competitiveness in the lithium product sector.

In a related development, Zhongjin Lingnan also updated its projections for everyday related party transactions for 2025 and 2026. The company estimates new related party transactions with CALB Co., Ltd. for 2025 will not exceed 400m yuan. For 2026, transactions with BYD Co., Ltd., Langsheng New Energy, Langsheng New Materials, CALB Co., Ltd., and Huayou Holding Group are projected to be up to 3bn yuan, 1bn yuan, 3bn yuan, and 3bn yuan, respectively. These transactions involve the sale and processing of lithium salt products, negotiated based on market prices.

The company's board and independent directors have approved these agreements, noting that they are in the ordinary course of business, conducted under fair and equitable terms, and will not harm the interests of non-related shareholders.