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Ximei Resources and Ganfeng Lithium entered into the framework subscription agreement
2022-05-20  Source:Ximei Resources

On May 19, Ximei Resources signed a framework share subscription agreement with GFL Investment (Hong Kong) Limited, a wholly-owned subsidiary of Ganfeng Lithium Co., Ltd, to introduce Ganfeng Lithium as a strategic investor. Ganfeng Lithium will subscribe 60 million shares of this round of directed issue at a price of HK$4/share, with a total subscription amount of HK$240 million, accounting for 16.7% of the total number of shares after the completion of this round of subscription, thus becoming the second largest shareholder of the company. All funds raised will be used to supplement working capital and investment in fixed assets.

Ximei Resources, founded in 2006,  is a major global operator of tantalum and niobium products, with its main products including hydrometallurgical products such as tantalum oxide, niobium oxide, potassium fluorotantalate and pyroprocess products such as tantalum powder, tantalum bars, niobium bars and ferro-niobium, etc. The market share of hydrometallurgical products in China has been above 30% in recent years. The company's performance is bright. In 2021, the company achieved a 26.9% year-on-year increase in revenue, 19% year-on-year increase in gross profit and 36% year-on-year increase in net profit. 

As the world's leading lithium ecological enterprise, Ganfeng Lithium is one of the most complete manufacturers of lithium series products supply, with strong technology accumulation, leading market share and core technology R&D advantages. Its business runs through all important links of the value chain, including upstream lithium resources development, midstream lithium salt deep processing and lithium metal smelting, downstream lithium battery manufacturing and comprehensive recycling of used batteries, and its products are widely used in electric vehicles, energy storage, 3C products, chemicals and pharmaceuticals. 

Ximei Resources and Ganfeng Lithium are both the leading enterprises in the segment field. This strong alliance fully shows that the company's comprehensive strength and development prospects have been affirmed by the industry and the capital market.In addition to the equity cooperation, both parties are expected to further explore the cooperation in mineral resources development and smelting technology to establish a long-term and stable strategic cooperation relationship.

Ximei Resources focuses on creating a global leading tantalum and niobium manufacturing operator and realizing the integrated development of tantalum and niobium industry. This strategic cooperation with Ganfeng Lithium is conducive to ensuring stable supply of raw materials, further expanding the production scale of the company and expanding the industrial chain, contributing to the development of national new materials and creating greater value for all shareholders.