Lithium Source (Indonesia), a third-tier holding subsidiary of Longpan Technology (603906.SH), plans to increase capital and expand shares and introduce investors

Zhitong Financial App News, Longpan Technology (603906.SH) announced that PT LBM ENERGI BARU INDONESIA (“Lithium Source (Indonesia)” or “Target Company” for short), the company's third-level holding subsidiary, plans to increase capital and expand its shares and bring in investors. LG ENERGY SOLUTION, LTD. (“LGES” or “Investors” for short) intends to invest US$15.9709 million in cash to subscribe for the newly issued common shares of the company with 255,930.64 shares, and obtain 20% of the shares after the completion of the new issuance of Lithium Source (Indonesia) shares.

After the transaction was completed, LBM NEW ENERGY (AP) PTE. LTD. (“Lithium Source (Asia Pacific)” or “Controlling Shareholder”)'s shareholding ratio (including indirect shareholding) to Lithium Source (Indonesia) fell from 100.00% to 80.00%, and Lithium Source (Asia Pacific) remains the controlling shareholder of Lithium Source (Indonesia). This transaction will not result in a change in the scope of the company's consolidated statements.

This transaction is in line with the company's overall strategic development plan and long-term interests. It is an important step for the company to broaden overseas markets. It is conducive to enhancing the company's overall strength in project research and development, market expansion, and product mass production in the lithium iron phosphate cathode materials industry chain. It is conducive to enhancing the financial strength of third-level holding subsidiaries, further enhancing their resilience to risks and market competitiveness, and meeting their financial needs for subsequent development.