Shandong Fengyuan Chemical (002805.SZ) announced on August 31 that the company held the ninth meeting of the sixth board of directors on August 30, 2024 to review and approve the "Proposal on the capital increase of its wholly-owned subsidiary by its wholly-owned subsidiary," and agreed that the company's wholly-owned subsidiary, Shandong Fengyuan Lithium Energy Technology Co., Ltd. (hereinafter referred to as "Fengyuan Lithium Energy"), would increase the capital of its wholly-owned subsidiary, Fengyuan (Yunnan) Lithium Energy Technology Co., Ltd. (hereinafter referred to as "Fengyuan Yunnan"), by RMB 300 million with its own funds or self-raised funds, all of which would be included in Fengyuan Yunnan's registered capital. After this capital increase, Fengyuan Yunnan's registered capital would be increased from RMB 200 million to RMB 500 million. This capital increase does not change the equity structure of Fengyuan Yunnan. Fengyuan Lithium Energy still holds 100% equity of Fengyuan Yunnan, which remains a wholly-owned subsidiary of Fengyuan Lithium Energy.

This capital increase by Fengyuan Lithium Energy in its wholly-owned subsidiary, Fengyuan Yunnan, can supplement the working capital of Fengyuan Yunnan, accelerate the progress of project construction, and enhance the overall competitive strength, providing strong support for the company's sustainable development and aligning with the company's overall global strategy.