Xingfa Group (600141.SH) subsidiary and BYD's wholly-owned subsidiary Qinghai Fudi signed a contract processing agreement for 80,000 tons/year lithium iron phosphate

Zhitong Finance App News, Xingfa Group (600141.SH) announced that Hubei Xingshun New Materials Co., Ltd. (“Xingshun New Materials”), a wholly-owned subsidiary of the company, and Qinghai Fudi Industrial Co., Ltd. (“Qinghai Fudi”) signed a “Lithium Iron Phosphate Commissioned Processing Agreement”. Qinghai Fudi commissioned Xingshun New Materials to process and produce 80,000 tons/year of lithium iron phosphate products and pay processing fees. The term of the agreement is 2 years, and the contract can be automatically renewed for 1 year after mutual agreement between the parties.

The implementation of this agreement is expected to have a positive impact on the company's performance. Qinghai Fudi is a wholly-owned subsidiary of BYD, the leading manufacturer of new energy vehicles in China. The signing of this agreement is a high recognition of the company's lithium iron phosphate production technology and product quality. It helps the company accumulate lithium iron phosphate production technology and experience, expand customer resources, enhance its market position, and lay the foundation for the high-quality development of the company's new energy industry. The company's main business is the production and sale of fine phosphorus chemical products. In recent years, the company has followed the trend and has successively built 100,000 tons/year iron phosphate, 80,000 tons/year lithium iron phosphate, and 100,000 tons/year lithium dihydrogen phosphate projects. From January to September 2025, the new energy sector's revenue accounted for about 3% of the company's total revenue. The signing and full implementation of this agreement is conducive to the full release of the company's production capacity in the new energy sector. It is expected to have a positive impact on the company's business performance and conform to the company's development strategy and the interests of all shareholders.