On the evening of April 16, Yuntianhua (600096) announced that it has officiallyintroduced Dangsheng Technology as a strategic partner, to jointly advance its new energy battery materials industry layout. The two parties will, through equity cooperation and project investment, jointly build an integrated iron phosphate and lithium iron phosphate industrial chain.

1. Equity adjustment: Dangsheng Technology takes control of two joint ventures; Yuntianhua waives preemptive subscription rights

The core of the cooperation is an equity transfer: Dangsheng Technology intends to, at a total consideration ofRMB 145 million, to acquire Zhejiang Youshan's 49% stake in Juneng New Material (priced at RMB 109 million) and 51% stake in Youtian Technology (priced at RMB 36 million); Yuntianhua will waive its preemptive subscription rights for the above stakes.

· Juneng New Material: Yuntianhua holds51% (controlling), Dangsheng Technology holds 49%.

· Youtian Technology: Dangsheng Technology holds51% (controlling), Yuntianhua holds 49%.

2. Project investment: total investment RMB 4.493 billion, expanding capacity by 200,000 t/yr iron phosphate + 150,000 t/yr lithium iron phosphate

After equity closing, the two parties will simultaneously launch two major investment projects, with total investment amount reachingRMB 4.493 billion:

· Juneng New Material (iron phosphate project): investmentRMB 1.839 billion, to build200,000 t/yr high-performance iron phosphate precursor and supporting projects.

· Youtian Technology (lithium iron phosphate project): investmentRMB 2.654 billion, to expand the under-construction 100,000 t/yr lithium iron phosphate facility to150,000 t/yr.

3. Cooperation background: termination of cooperation with Huayou Group; assuming the 500,000 t/yr iron phosphate plan

This cooperation is a key adjustment to Yuntianhua's new energy strategy:

· In October 2021, the company launched a 500,000 t/yr iron phosphate and supporting project plan; Phase I of 100,000 t/yr has been completed and put into operation.

· In 2022–2023, Yuntianhua, Huayou Group and Zhejiang Youshan set up joint ventures Juneng New Material and Youtian Technology to advance the projects.

· On April 15, 2026, the company and Zhejiang Youshan terminated the original cooperation agreement and simultaneously introduced Dangsheng Technology as the successor.

This 200,000 t/yr iron phosphate project is a core component of the company's 500,000 t/yr plan.

4. Strategic significance: full-chain synergy from phosphate ore → phosphoric acid → iron phosphate → lithium iron phosphate

Yuntianhua stated the cooperation aligns with the national new energy and high-value utilization strategy for phosphate resources:

· Relying on the company's phosphate ore and phosphochemical industry chain advantages to lock in upstream raw material costs and supply stability.

· Leveraging Dangsheng Technology's cathode material technology and market advantages to focus on high tap-density, high-purity high-end products.

· Improve the “phosphate ore—phosphoric acid—iron phosphate—lithium iron phosphate” full chain, reducing the risk of industry cycle fluctuations.

5. Risk response: focus on premiumization to address capacity expansion and price competition

In response to industry capacity expansion, intensified competition and price downside risks, the joint ventures will set up dedicated teams:

· Develop next-generation iron phosphate and lithium iron phosphate products.

· Establish premium brands and customized material solutions.

· Provide joint testing services to strengthen technical and market barriers.

This cooperation does not involve related-party transactions or major asset restructuring; the project still requires antitrust review and is expected to significantly enhance the scale and earnings resilience of Yuntianhua's new energy materials segment.