Jiangsu Tairui Lianteng Materials increases capital by 200 million yuan to support the 15,000-ton lithium hexafluorophosphate project

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On November 22, Ruitai New Materials (301238) and Tianji Co., Ltd. (002759) both issued announcements stating that Ruitai New Materials and its wholly-owned subsidiary, Jiangsu Xintai Materials Technology Co., Ltd. (hereinafter referred to as “Xintai Materials”), invested 200 million yuan in Jiangsu Tairui Lianteng Materials Technology Co., Ltd. (hereinafter referred to as “Tairui Lianteng”) in the form of cash funds. Among them, Xintai Materials contributes 150 million yuan, while Ruitai New Materials contributes 50 million yuan. The announcement states that Tairui Lianteng was established with an investment of 1 billion yuan by Ruitai New Materials, Xintai Materials – a wholly-owned subsidiary of Tianji Shares – and Ningde New Energy Technology Co., Ltd. (hereinafter referred to as “Ningde New Energy”). Among them, Xintai Materials contributes 70%, Ruitai New Materials contributes 25%, and Ningde New Energy contributes 5%. Due to its business development plans and resource allocation strategies, Ningde New Energy will not participate in this capital increase. As a result of the increase, Tai Rui Lian Teng’s registered capital will rise from 1 billion yuan to 1.2 billion yuan. Ruitai New Materials and Tairui Lianteng exhibit a complementary and collaborative relationship between upstream and downstream entities. Ruitai New Materials is primarily engaged in the research, development, production, and sales of electronic chemicals as well as other new chemical materials such as silicones. The main electronic chemicals that the company handles at present include lithium-ion battery electrolytes and their additives, supercapacitor electrolytes, and optical materials ； As a key supplier of upstream materials, Tairui Lianteng mainly produces lithium hexafluorophosphate (a core ingredient in lithium-ion battery electrolytes); the first-phase project with an annual production capacity of 15,000 tons of lithium hexafluorophosphate was put into operation last year. Based on the current capacity utilization and future development trends, Tairui Lianteng plans to advance and complete the construction of the second-phase project involving 15,000 tons of lithium hexafluorophosphate. Based on the funding requirements of the aforementioned projects, Ruitai New Materials plans to increase Taier Lianteng’s capital by 200 million yuan in the form of cash, together with Xintai Materials. Referring to this capital increase, Ruitai New Materials stated in its announcement: “Recently, driven by the growth of both the new energy vehicle and energy storage industries, there have been significant changes in the supply and demand for lithium hexafluorophosphate, leading to a rapid rise in market prices.” This transaction is a strategic decision made by the company based on the current industry conditions and future development trends. It helps the company to optimize its industrial chain in the field of lithium battery materials, improve its supply chain, and enhance its overall competitiveness. ”