Fangyuan Shares has announced the decision to discontinue its investment in the production of battery-grade lithium carbonate and the comprehensive utilization project for used lithium iron phosphate batteries. This move comes as the projected cost of the project was not anticipated to exceed RMB 1.886 billion. To date, the project has incurred an actual investment of RMB 97 million, and the land allocated for the project has been returned to storage. As part of its strategy to optimize resource allocation and mitigate operational risks, the company will proceed with the deregistration of Fangyuan Lithium Industry.

Fangyuan Shares emphasizes that this action will not have a negative impact on the company's business development. Initially, the project was planned to be funded through a private placement, but due to various factors, including shifts in the market environment, the company has opted to terminate the private placement process.