REPT Battero (00666) plans to invest 50 million yuan to acquire 10.8696% equity of Fu'an Guolong Nanomaterials Co., Ltd. through acquisition and capital increase.

REPT BATTERO (00666) announced that on January 28, 2026 (after trading hours), the company entered into an investment agreement with the target company, Fu'an Guolong Nano Materials Co., Ltd., the seller Jiaxing Songhe Xuehu New Energy Industry Entrepreneurship Investment Partnership (Limited Partnership), the founder of the target company, the employee stock platform of the target company, and other shareholders of the target company. According to the investment agreement, the company agreed to purchase all the equity of the target company held by the seller for a consideration of RMB 10 million (corresponding to the registered capital of the target company of RMB 2.777778 million) and to subscribe to the registered capital of the target company of RMB 11.11111 million for a consideration of RMB 40 million. After acquiring the equity of the target company and increasing the capital of the target company, the company will hold a total of 10.8696% equity in the target company. The target company will not become a subsidiary of the company, and its financial statements will not be consolidated into the group financial statements. On January 28, 2026 (after trading hours), the company entered into a shareholder agreement with the target company, the core team shareholders of the target company, and other shareholders of the target company to specify the rights and responsibilities of the parties related to the target company. The announcement stated that the fourth-generation high-voltage lithium iron phosphate provided by the target company is cost-effective compared to the third-generation high-voltage lithium iron phosphate in the market and has better performance. This product has demonstrated high cost and quality advantages in the company's commercial vehicle products, while maintaining close cooperation during the supply period. With the company's continued expansion strategy in the commercial vehicle market, stable supply chain assurance becomes increasingly crucial. By investing in equity with the target company, the company not only strengthens control over the upstream, but also injects confidence into downstream customers and the market. Currently, there is a shortage of production capacity of high-voltage lithium iron phosphate, and this move by the company is a strategic response common in the industry. The target company not only has industry-leading technology for nickel-iron prepared lithium iron phosphate cathode materials, but can also achieve industrial synergy with the company's controlling shareholder, Qingshan Group, a global leader in the nickel-iron industry, to ensure resource security and efficient utilization, with the potential for further cost reductions in the long run. The target company has developed a "one-step co-sintering method" that reduces the number of sintering cycles, reduces carbon emissions; uses a small amount of alkali, greatly reduces wastewater, and is more environmentally friendly. The fourth-generation high-voltage lithium iron phosphate positive electrode material of the target company has been in mass production for a year, and as of November 2025, 15,000 tons have been produced. The fifth-generation high-voltage lithium iron phosphate positive electrode material products are currently undergoing user testing. In energy storage or power products, high energy density and high kinetics of lithium iron phosphate are core materials. Product development by the company also requires close cooperation with enterprises that have continuous technology development capabilities to maintain technological leadership and ensure confidentiality. Equity cooperation is an effective way to protect research and development advantages and promote deep collaboration.