On December 20, 2023, Jiangsu Lopal Tech (02465.HK) announced that on December 20, 2024, the company, target company LBM New Energy (AP) Pte. Ltd (an indirect non-wholly owned subsidiary of the company), existing Shareholders, and investors entered into a subscription agreement, under which INA and Aisis conditionally agreed to subscribe, and the target company conditionally agreed to allot and issue subscription shares to INA and Aisis, equivalent to approximately 34.01% and 11.34% of the target company after the expanded share capital, with subscription prices of 0.15 billion USD and 50 million USD respectively.

On December 20, 2024, the company, target company, existing Shareholders, and investors have entered into a Shareholder agreement that will be effective upon and from completion. According to the Shareholder agreement, each investor has been granted liquidity Options, whereby, if an eligible initial public offering has not been achieved within 6 years from completion, each investor will have the right to liquidate their equity in the target company in accordance with the terms and conditions of the Shareholder agreement.

In addition, according to the Shareholder agreement, the target company has been granted subscription Options, whereby, if no liquidity Options have been achieved, after the ninth (9) anniversary of completion, the target company will have the right to request investors to sell all or part of their target shares to the target company in accordance with the terms and conditions of the Shareholder agreement.

The target company is a private limited company registered in Singapore, an indirect non-wholly owned subsidiary of the company, wholly owned by existing Shareholders. The target company mainly engages in investment, Asset Management, and import and export trade.

Directors believe that the subscription will strengthen the group's overall strength in research and development, market expansion, and mass production of lithium iron phosphate Cathode Material in the industry. The subscription will also enhance the group's international status and comprehensive competitive advantage, further improving the group's brand value and profit potential. Therefore, the subscription aligns with the group's overall Global Strategy development planning and long-term interests, which has positive strategic significance for the group's future development.