On February 8, Yongtai Technology (002326.SZ) announced that the company is planning an asset acquisition through a share issuance and a supporting fundraising initiative. Trading of its shares will be suspended starting from the market opening on February 9, 2026. The core target of this transaction is the remaining 25% equity stake in the company's controlled subsidiary, Shaowu Yongtai High-tech New Materials Co., Ltd., with the counterparty being the global leader in power batteries, CATL. Yongtai Technology currently holds a 75% stake in Yongtai High-tech. Upon completion of the transaction, Yongtai Technology will achieve full ownership, while CATL will transition from being a minority shareholder in the subsidiary to directly holding shares in the listed company, Yongtai Technology.

The announcement indicates that the transaction will be conducted through a share issuance. Both parties have signed a letter of intent for the equity acquisition, with final details such as the transaction price and share lock-up period still under negotiation. Yongtai Technology has committed to disclosing the formal plan by March 3, 2026. If the disclosure is not made by this deadline, the trading suspension will be lifted, and the planning process will be terminated.

Full Ownership of Core Subsidiary to Further Aid Performance Recovery

Yongtai High-tech serves as the core operating entity for Yongtai Technology's lithium battery materials business, primarily engaged in the production and sales of fluorine-containing new materials, basic chemical raw materials, and lithium battery-related materials. Following the full acquisition, the listed company will eliminate the impact of minority shareholder interests, which is expected to enhance net profit attributable to the parent company and improve overall operational and management efficiency.

This move comes at a critical juncture for Yongtai Technology's performance recovery. The company's 2025 performance forecast shows that, benefiting from recovering demand in the new energy vehicle and energy storage sectors, both the sales volume and prices of lithium battery materials have increased year-on-year, leading to a significant rise in gross profit from main operations and a substantial narrowing of the annual loss. The company expects 2025 revenue to be between 5.0 and 5.5 billion yuan, with a net profit loss attributable to the parent company ranging from 25.6 million to 48.6 million yuan. This represents a reduction of over 90% compared to the 478 million yuan loss in 2024.

In terms of production capacity layout, Yongtai Technology has established a comprehensive system covering key materials such as electrolyte, lithium hexafluorophosphate (LiPF6), LiFSI, VC, and FEC. Its annual production capacities include 150,000 tons of electrolyte, 67,000 tons of LiFSI, and a total of 10,000 tons of VC, positioning it as one of the core suppliers for leading downstream battery manufacturers.

CATL Transforms into Shareholder of Listed Company, Deepening Upstream-Downstream Integration

The most market-notable aspect of this capital operation is the transformation of CATL's role: from a shareholder in the joint venture company to a direct shareholder in Yongtai Technology. This elevates the cooperation between the two parties from a business level to a deep capital-level integration.

For Yongtai Technology, introducing CATL as a strategic shareholder will further solidify supply chain stability and customer loyalty, aiding the company in building an "electrolyte material one-stop procurement platform" and strengthening its influence and order security in the upstream materials sector.

For CATL, extending upstream through this equity swap allows it to more fully participate in the growth dividends of the materials segment while securing the supply of core materials. This aligns with its long-term strategy in the power battery and energy storage sectors. The two companies also have potential for further collaboration in emerging areas such as energy storage thermal management and fluorinated fluids.

Yongtai Technology believes that the long-term prospects for the new energy industry remain positive, with sustained demand release from downstream power and energy storage applications. Coupled with optimization on the supply side, the supply-demand dynamics for lithium battery materials are expected to remain tight, which should support continued improvement in the company's performance and profitability levels.

Currently, this major asset restructuring is still in the planning and demonstration phase. Related auditing and evaluation work is underway, and there remains a degree of uncertainty.