Zhongke Electric plans major expansion and subsidiary buyback

Hunan Zhongke Electric plans a substantial 7 billion yuan investment in a new 300,000-ton lithium-ion battery anode material integrated production project in Luzhou, Sichuan. The project will be developed in two phases, with an initial 4.7 billion yuan investment for a 200,000-ton base, followed by a 2.3 billion yuan investment for an additional 100,000 tons. This move aims to expand the company's lithium battery anode business, meet growing market demand, and enhance competitiveness. The project is subject to regulatory approvals and land acquisition processes, with inherent uncertainties.

In a related strategic move, the company also announced the buyback of Shenzhen Capital Group's 75% stake in its controlling subsidiary, Hunan Zhongke Xingcheng Holdings. This buyback, valued at an estimated maximum of 1,182,977,705.94 yuan, will transform Hunan Zhongke Xingcheng Holdings into a wholly-owned subsidiary of Hunan Zhongke Electric after the transaction is finalized. These actions reflect the company's efforts to consolidate its operations and strengthen its market position.