Ganfeng Lithium Group (01772) plans to sell 40,256,000 new H shares and issue convertible bonds with a total principal amount of HK$1.37 billion.

Ganfeng Lithium Group (01772) announces that the Company and the placing agent entered into a placing agreement on August 25, 2025. According to the terms of the placing agreement and subject to the conditions stated in the placing agreement, the Company has agreed to issue and place 40,025.6 million H shares at the placing price, and the placing agent has agreed to act as the Company's agent on a best efforts basis to solicit subscription for the placing shares at the placing price by the underwriters. The placing shares will be issued and distributed under the general mandate. The placing shares represent approximately 9.02% of the enlarged number of H shares issued and approximately 1.95% of the total number of issued shares after the distribution and issuance of the placing shares. The placing price per share is HK$29.28, representing a discount of approximately 5.49% compared to the closing price of the H shares at HK$30.98 on August 25, 2025. Assuming all placing shares are fully subscribed, the total proceeds from the placing are expected to be approximately HK$1.172 billion, with the net proceeds (after deduction of commission and estimated expenses) expected to be approximately HK$1.169 billion. The Company intends to use the proceeds from the placing for loan repayment, capacity expansion and construction, working capital replenishment, and general corporate purposes. On August 25, 2025, the Company (as the issuer) and the agents entered into a subscription agreement. Subject to the terms and conditions of the subscription agreement, the agents have agreed to subscribe and pay for or cause subscribers to subscribe and pay for a total principal amount of HK$1.37 billion in bonds issued by the Company. The bonds can be converted into H shares under the terms and conditions specified, with an initial conversion price of HK$33.67 per H share (adjustable). The initial conversion price of HK$33.67 per H share represents a premium of approximately 8.68% compared to the closing price of H shares at HK$30.98 on August 25, 2025 (the day of signing the subscription agreement), and a premium of approximately 6.48% compared to the average closing price of H shares at HK$31.62 over the five consecutive trading days up to and including August 25, 2025. After the completion of the bond issuance, the net proceeds from the subscription matters, after deduction of the agents' commission and other estimated expenses related to the bond issuance, will be approximately HK$1.346 billion. The Company intends to use the proceeds from the subscription matters for loan repayment, capacity expansion and construction, working capital replenishment, and general corporate purposes. The bonds are intended to be listed on the Vienna MTF operated by the Vienna Stock Exchange. The Company will apply for the listing of the bonds on the Vienna Stock Exchange. The Board believes that the placing and issuance of bonds will strategically utilize domestic and international capital markets resources and opportunities for the Company to enter the international capital market with a cost-effective financing platform, thereby promoting the Company's sustainable and stable growth. In particular, the placing is expected to diversify the Company's shareholder base and increase the free float of H shares, thereby enhancing market liquidity and trading volume. Additionally, the issuance of bonds will further supplement the Company's existing sources of funds, help balance and optimize the capital structure, strengthen the Company's financial position, improve capital efficiency, and enhance the overall competitiveness of the Company.