ST BLEST's subsidiary, BLEST Lithium Battery, terminates external investment and will no longer hold equity in Xiran Technology

According to the Zhitong Finance APP, ST BaLi (603959.SH) announced that its wholly-owned subsidiary Changzhou BaLi Lithium Battery Smart Factory Co., Ltd. (hereinafter referred to as "BaLi Lithium Battery") has invested in Xiran Technology (Jiangsu) Co., Ltd. (hereinafter referred to as "Xiran Technology") through cash acquisition and capital increase. BaLi Lithium Battery signed the "Investment Agreement" (hereinafter referred to as "238 Investment Agreement") with Wang Jingxu and Suzhou Chihe Enterprise Management Center (Limited Partnership) (hereinafter referred to as "Suzhou Chihe") in August 2023, stipulating that: (1) BaLi Lithium Battery will acquire 30% and 6% equity of Xiran Technology (Jiangsu) Co., Ltd. (hereinafter referred to as "Xiran Technology" or "Target Company") held by Wang Jingxu and Suzhou Chihe for a total cash consideration of 35.28 million yuan, and it is agreed that after the completion of the equity transfer, BaLi Lithium Battery will exercise 51% of the voting rights and consolidate the financial statements to implement actual control over the Target Company; (2) After the above transfer is completed, BaLi Lithium Battery will subscribe for 980,000 yuan of the Target Company's newly increased registered capital with a cash investment of 8 million yuan. On February 2, 2024, Xiran Technology completed the industrial and commercial change registration procedures. BaLi Lithium Battery obtained registration to hold 36% of the equity of Xiran Technology and related rights under the contract according to the agreement.

Since the signing of the "238 Investment Agreement," BaLi Lithium Battery has only paid 10 million yuan of the total agreement price of 35.28 million yuan, with 25.28 million yuan remaining unpaid as per the agreed timeline. To optimize resource allocation and focus on its main business, BaLi Lithium Battery recently signed the "Equity and '238 Investment Agreement' Contract Rights Transfer Agreement" (hereinafter referred to as "Equity Transfer Agreement") with Jiangsu Jianwei Holding Group Co., Ltd. (hereinafter referred to as "Jiangsu Jianwei"), in which both parties agreed that BaLi Lithium Battery will transfer its 36% equity in Xiran Technology and all rights stipulated in the "238 Investment Agreement" to Jiangsu Jianwei for a total transfer price of 35.28 million yuan. After the transfer is completed, BaLi Lithium Battery will no longer hold any equity in Xiran Technology.

The company held the ninth meeting of the fifth board of directors on May 20, 2025, to review and approve the proposal on the transfer of equity in Xiran Technology and the contract rights of the 238 Investment Agreement, and the board of directors agreed for its wholly-owned subsidiary BaLi Lithium Battery to sign the above-mentioned Equity Transfer Agreement. According to the relevant provisions of the "Shanghai Stock Exchange Listing Rules," this matter does not need to be submitted to the shareholders' meeting for deliberation