TSAKER NE (01986) plans to invest 51.26 million yuan to establish a joint venture with Zijin Lithium to engage in the research, production, and sales of iron phosphate.

TSAKER NE (01986) announced that on August 6, 2026 (after trading hours), its indirect non-wholly owned subsidiary, Shandong Caike New Materials, entered into a joint venture agreement with Zijin Lithium Yuan. According to this agreement, the parties agree to establish a joint venture company with a registered capital of RMB 93.2 million. Upon establishment, the joint venture will be owned 55.00% by Shandong Caike New Materials and 45.00% by Zijin Lithium Yuan. Specifically, Shandong Caike New Materials will contribute RMB 51.26 million in cash, while Zijin Lithium Yuan will contribute RMB 41.94 million in cash. The joint venture will become a subsidiary of the company, and its operating performance, assets, and liabilities will be consolidated into the group's financial statements. The parties have decided to establish the joint venture to engage in the research and development, production, and sales of the main product, iron phosphate, in the group's battery materials sector. The joint venture will lease existing iron phosphate assets with an annual production capacity of approximately 20,000 tons from Zijin Lithium Yuan (including land, buildings, and equipment) and will carry out expansion and upgrade projects for the iron phosphate production line. The establishment of the joint venture aims to integrate the respective advantageous resources of the parties, specifically: (1) To leverage the group's advantages in iron phosphate production processes, technological research and development, and operational management, alongside the capital advantages of Zijin Mining Group, to jointly promote the development of the group's iron phosphate business; (2) To rely on the existing annual production line of 20,000 tons of iron phosphate for expansion and upgrading, with an initial plan to increase capacity to 100,000 tons of iron phosphate products per year, and to timely further expand capacity based on future market demand; (3) To take advantage of the industrial cluster strengths of the project's location, strengthen collaborative cooperation with upstream raw material suppliers and downstream customers, and enhance supply chain efficiency and operational benefits; and (4) To improve the layout of the group's iron phosphate production bases, adding a new production base in Sanfang, Fujian to the existing northern production bases in Dongying, Shandong, and Cangzhou, Hebei, further covering the southern market, reducing costs, and enhancing product competitiveness. After considering the above factors, the board believes that the joint venture agreement and the transactions proposed therein will help the group seize development opportunities in the new energy battery materials market, enhance the market competitiveness of the group's iron phosphate business, align with the group's long-term development strategy, and that the joint venture agreement and the proposed transactions thereof are concluded on normal commercial terms, are fair and reasonable, and are in the overall interest of the company and its shareholders.