Announcement of Delay in Construction of the “62,000 tons/year electrolyte and related facilities project” by Dongying Chemical in Qingliu County, Fujian, Worth 1.072 billion RMB

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On June 23, Sanmei Co., Ltd. issued a announcement regarding the progress of the investment projects carried out by its wholly-owned subsidiary. The announcement states that Dongying Chemical Co., Ltd., a wholly-owned subsidiary of Sanmei Shares and located in Qingliu County, Fujian Province, plans to invest around 1.072 billion yuan in building a \"62,000 tons per year electrolyte and related facilities project.\" However, as of now, no actual construction work has begun on this project, and the completion date has been postponed to June 2027. The announcement states that the main reason for the project delay is the significant changes in the market environment of the electrolyte industry. In particular, the increasing demand for cost control in downstream applications such as lithium-ion batteries and new energy vehicles has led to a shift in the supply and demand dynamics of the electrolyte market. The lithium hexafluorophosphate industry is facing a situation characterized by slowing demand growth, overcapacity, and low prices. In addition, the progress of the relevant fundraising projects undertaken by Sanmei Shares has also affected the pace of implementation for this project. Sanimi Co., Ltd. stated that it will actively coordinate resources, carefully assess the feasibility of the projects, control capital investment, and ensure the overall benefits of these projects.