Chengxin Lithium Group (002240.SZ) intends to introduce Xingyin Investment to increase its capital by 500 million yuan for Zhiyuan Lithium Industry.

Chengxin Lithium Group (002240.SZ) announced that its wholly-owned subsidiary Sichuan Zhiyuan Lithium Industry Co., Ltd. (referred to as "Zhiyuan Lithium Industry") has introduced new investors through capital increase and expansion. Xingyin Financial Asset Investment Co., Ltd. (referred to as "Xingyin Investment") has injected 500 million yuan into Zhiyuan Lithium Industry, with 208 million yuan going towards the company's paid-in capital and 292 million yuan towards the company's capital surplus. After the capital increase, Zhiyuan Lithium Industry's registered capital will be changed to 833 million yuan, with the company holding 75% of its equity and Xingyin Investment holding 25% of its equity. Zhiyuan Lithium Industry remains a subsidiary controlled by the company. The company has waived its preemptive rights to this capital increase and expansion in Zhiyuan Lithium Industry. The announcement stated that Xingyin Investment's subscription of 25% equity in Zhiyuan Lithium Industry and the company's waiver of preemptive rights was a cautious decision made to meet the company's development needs, in line with the company's overall development plan and long-term interests.