To The Moon

Zhejiang Yongtai Technology Co.,Ltd. announced on February 8 that it is planning an asset acquisition through a share issuance and a complementary fundraising exercise. The transaction target is the 25% equity stake in Shaowu Yongtai New Material Co., Ltd. held by Contemporary Amperex Technology Co.,Ltd.. Yongtai Technology currently holds a 75% stake in the target company. The company intends to acquire CATL's 25% stake in Yongtai New Material by issuing shares and conduct additional fundraising. Upon completion of the transaction, CATL will become a shareholder of Yongtai Technology. Trading of the company's shares will be suspended starting from the market open on February 9, 2026, with the transaction plan expected to be disclosed within no more than ten trading days. This implies that once the deal is finalized, Yongtai New Material will become a wholly-owned subsidiary of Yongtai Technology, fully eliminating the impact of minority shareholder interests. This move is expected to help increase the listed company's net profit attributable to the parent and enhance overall management efficiency. Currently, Yongtai Technology and CATL have signed a "Letter of Intent for Equity Acquisition," reaching a preliminary agreement on the asset purchase. However, final details such as the transaction price, payment method, and share lock-up arrangements are still subject to a formal agreement. This transaction holds significant strategic importance for both parties. Notably, on the afternoon of February 6, Yongtai Technology's stock price surged sharply. By the close of trading that day, the stock rose 10.02% to 28.77 yuan per share, giving the company a total market capitalization of 26.6 billion yuan. According to its official website, Yongtai Technology was established in October 1999. It is a manufacturer of fluorine-based pharmaceuticals, agrochemicals, and new energy materials, with a core focus on fluorine technology, driven by technological innovation and smart manufacturing. Fundamentally, Yongtai New Material was established on June 30, 2016, with a registered capital of 300 million yuan and is located in the Jintang Industrial Park in Shaowu City, Fujian Province. Its business scope includes R&D in new material technologies, manufacturing of basic chemical raw materials, and production and sales of chemical products. Affected by fluctuations in the US dollar exchange rate and the execution of previously agreed low-price long-term contracts, Yongtai Technology expects to achieve operating revenue between 5 billion and 5.5 billion yuan in 2025. Although the net profit attributable to the parent company is still negative (a loss of 25.6 million to 48.6 million yuan), this represents a reduction of over 90% compared to the loss of 478 million yuan in the same period last year. It is noteworthy that Yongtai Technology has a significant presence in the lithium battery materials sector. In an investor communication on November 24, 2025, Yongtai Technology disclosed that its currently mass-produced products include electrolyte, lithium hexafluorophosphate, lithium bis(fluorosulfonyl)imide, vinylene carbonate, and fluoroethylene carbonate. Specifically, the company has an annual production capacity of 150,000 tons for electrolyte; approximately 18,000 tons per year for solid lithium hexafluorophosphate; 67,000 tons per year for liquid lithium bis(fluorosulfonyl)imide; 5,000 tons per year for VC, with an additional 5,000 tons per year capacity newly entering trial production on November 17, 2025. After this expansion, the company's total VC capacity will reach 10,000 tons per year; and 3,000 tons per year for FEC. Yongtai Technology's outlook on the future market aligns closely with CATL's strategic direction. Yongtai Technology believes that, based on the long-term positive development trend of the new energy industry, growth momentum in downstream power and energy storage markets will persist. Coupled with increased concentration of production capacity on the supply side and a more cautious approach to capacity expansion, a tight supply-demand balance for lithium battery materials is expected to continue. In July of last year, Yongtai Technology was involved in a lawsuit with another lithium battery giant, Tianci Materials. On the evening of July 2, 2025, Tianci Materials disclosed an announcement stating that its wholly-owned subsidiary, Jiujiang Tianci New Material Co., Ltd., as the plaintiff, had filed a civil lawsuit with the Jiangxi High People's Court over a trade secret infringement dispute. The announcement indicated that the defendants in the case included Yongtai Technology, Shaowu Yongtai New Material Co., Ltd., and ten other entities, with the claimed amount involving expected economic losses of 887.1 million yuan and attorney fees of 1.15 million yuan paid by the plaintiff for safeguarding its rights. Tianci Materials pointed out that, in order to obtain illegal benefits, defendant Jiu Lisheng violated confidentiality obligations and conspired with defendant Qi Zhengfeilong. After reaching a cooperation agreement with defendant Yi Zhejiang Yongtai Technology Co., Ltd. and defendant San Renbao, defendants Yi to Wu applied the plaintiff's liquid lithium hexafluorophosphate process technology资料, which they allegedly obtained through improper means, to defendant Er Shaowu Yongtai New Material Co., Ltd.'s annual 134,000-ton liquid lithium salt industrial project. On July 3, 2025, Yongtai Technology denied the infringement allegations, stating that the technology for the production line in question was independently developed. The company furthermore filed a counterclaim seeking approximately 57.5193 million yuan in compensation, citing reputational damage, and directly accused Tianci Materials of attempting to exclude competitors by disparaging Yongtai Technology's commercial reputation. In the aforementioned incident, both Li Sheng and Zheng Feilong were sentenced in 2025.