GCL Technology Holdings Limited (GCL Tech) announced that on 19 October 2026 it entered into a non-binding memorandum of understanding with Golden Concord Group Limited for the proposed purchase of approximately 81.91% of Sichuan GCL Lithium Battery Technology Co., Ltd.
The preliminary consideration is set at about RMB 2.50 billion (HK$ 2.94 billion). Settlement is expected to comprise RMB 650.00 million in cash and RMB 1.85 billion (HK$ 2.17 billion) through new share issuance. The issue price of the consideration shares will be no less than HK$ 1.30 per share, implying up to 1.671 billion new shares.
GCL Tech plans to secure control of the target via equity transfer and/or capital injection, allowing post-completion consolidation of the target’s results. The target owns a Phase I facility in Meishan, Sichuan, with annual LFP cathode capacity of 120,000 tons across a 156,000 m² plant area.
Performance commitments require the target to deliver a minimum aggregated adjusted net profit of RMB 620.00 million for FY 2027-2028 and to develop sixth-generation LFP cathode material with compacted density above 2.8 g/cm³ by end-2028. Shortfalls would trigger compensation from the vendor out of the consideration received.
Key conditions precedent include satisfactory due diligence, an independent valuation, waiver of other shareholders’ pre-emptive rights, board and independent shareholder approvals (including a specific mandate for share issuance), regulatory clearances, and Stock Exchange approval for listing the consideration shares. The vendor has granted GCL Tech a three-month exclusivity period; due diligence is expected to complete within 30 days, extendable for vendor-caused delays.
If completed, the transaction will constitute a connected transaction—and potentially a notifiable transaction—under Chapters 14A and 14 of the Hong Kong Listing Rules, respectively.
GCL Tech positions the deal as part of its strategic shift from a “single-item champion in granular polysilicon” to a “global multi-product new-energy materials platform,” aiming to expand into lithium iron phosphate (LFP) cathode materials and diversify earnings beyond polysilicon and wafers.
No definitive agreement has been executed, and the acquisition may or may not proceed. Shareholders and potential investors are advised to exercise caution when dealing in GCL Tech securities.
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