Breaking News! Liuguo Chemical Terminates 2025 Private Placement

I. Core Reason to Terminating Private Placement: Changes in Market ecological stability

The announcement disclosed that since the disclosure of the private placement plan, the company has continued to advance all audit work, including responses to inquiries and material updates, in conjunction with intermediaries. Based on a thorough assessment of the current capital market ecological stability, changes in sector cycles, and the company's own operating status, the company made the decision to terminate this equity financing after prudent judgment and multi-party communication with intermediaries and major shareholders.

This private placement had previously completed review by the shareholders' general meeting, acceptance by the Shanghai Stock Exchange, and two rounds of inquiries and written responses. The withdrawal of the consumption still awaits the formal approval of the Shanghai Stock Exchange, and the company will disclose the approval progress in a prompt manner.

II. Operations Unaffected; 280,000-ton Battery-grade Refined Phosphoric Acid Project Continues to Proceed

The company explicitly emphasized that the termination of this private placement will not have a significant negative impact on daily production and operations, nor does it harm the interests of the listed company, all shareholders, or small and medium-sized investors. The production and operation of the existing fertilizer and fine phosphorus chemical businesses remain stable.

Regarding the core fundraising project of the previous private placement——the 280,000 tons/year battery-grade refined phosphosphoric acid project of the controlling subsidiary Hubei Huiyang New Materials, the company stated that it will steadily advance according to the original construction plan, and the project's commissioning schedule will not be affected by the termination of this private placement.

Information shows that the total investment of this refined phosphosphoric acid project is approximately 1.194 billion yuan. The items target the upstream raw material track to iron phosphate and lithium battery cathodes, which is the core transformation layout to the company to enter the new energy phosphorus chemical sector. Previously, the company planned two private placements with this project as the fundraising target. while this equity financing has been halted, the project construction funds will be guaranteed through multiple channels such as self-owned funds and bank credit.

III. Company's Subsequent Capital Operation Planning

Liuguo Chemical mentioned in the announcement that it will continue to track changes in capital market conditions and make thorough judgments based on sector research, project investment, and funding needs. Subsequently, it will flexibly choose from various capital tools such as private placement, bonds, and bank financing at the appropriate time to match the company's medium-to-prolonged manufacturing upgrading and production expansion needs.

IV. sector Perspective Interpretation

Recently, the secondary market evaporative environment in the phosphorus chemical and lithium battery upstream raw material sectors has increased, and several chemical listed companies have postponed or terminated their refinancing plans. sector analysis points out that the concentrated emit of upstream phosphoric acid and iron phosphate capacity, coupled with temporarily weak downstream lithium battery demand and pressure on capital market valuations, are common external factors to many companies suspending private placements.

to Liuguo Chemical, the 280,000-ton refined phosphosphoric acid project is a key handle to new energy transformation. Persisting in independent advancement of construction will help the company seize the battery-grade phosphoric acid raw material market; however, the immediate loss of equity financing channels will increase the company's interest-bearing debt scale, and there is upward pressure on financial costs.