Tianqi Lithium Corporation (HKEX: 09696) has announced that its wholly-owned subsidiary, Tianqi Lithium (Shehong) Co., Ltd. (Shehong Tianqi), plans to enter into a capital increase agreement with Sunwoda Electronic Co., Ltd. (Sunwoda Power or the target company), Sunwoda Huizhou New Energy Co., Ltd. (the target company's largest shareholder), Wang Mingwang, and Wang Wei (collectively, the actual controllers of Sunwoda Power).
Under the proposed agreement, Shehong Tianqi will use RMB 1.5 billion of its own funds to subscribe for 79,218,106 new shares in Sunwoda Power. Another investor, Sungrow Power Supply Co., Ltd., intends to subscribe for 345,919,064 new shares in the same target company as part of this capital increase round.
Sunwoda Power is a globally leading comprehensive new energy technology enterprise, integrating the research, production, and sales of battery cells, modules, battery management systems (BMS), and battery packs (PACK). It is dedicated to providing scenario-based power battery and energy storage solutions.
The company stated that this transaction aligns with its vertical integration development strategy and the trend of upstream and downstream industry chain collaboration. Furthermore, the investment will deepen Tianqi Lithium's cooperation with downstream industry players, opening new channels and avenues for business expansion. This move supports the company's vertical integration strategy while exploring opportunities for circular development within the industrial chain. From a long-term strategic perspective, the transaction is expected to have a positive impact on the company's future business development.
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