Rongbai Technology (688005.SH) plans to invest in Guizhou Xinren and currently has a lithium iron phosphate production line with an annual output of 60,000 tons

According to the Zhitong Finance App, Rongbai Technology (688005.SH) announced that the company plans to use 342 million yuan of its own capital to acquire 54.9688% of the shares of Guizhou Xinren New Energy Technology Co., Ltd. (hereinafter referred to as “Guizhou Xinren”) and use its own capital of 140 million yuan to increase the capital of Guizhou Xinren. After the transaction is completed, the company holds 93.2034% of Guizhou Xinren's shares. Guizhou Xinren will become the company's holding subsidiary and included in the company's consolidated statements.

Rongbai Technology already has innovative lithium iron phosphate mass production technology and a deep customer base, and Guizhou Xinren currently has an annual output of 60,000 tons of lithium iron phosphate production line and has the potential to rapidly expand production. Through this transaction, the company will rapidly expand its new technology on the target company's production line, quickly build large-scale lithium iron phosphate production capacity with competitive advantages, quickly transform technical advantages and product advantages into industrialization advantages, and seize rapid market growth opportunities. The transaction will improve the company's platform-based layout, enrich the existing product matrix and business structure, and further consolidate the company's leading position as an overall solution provider for the global cathode materials industry.