Xingfa Group disclosed that its wholly-owned subsidiary, Xingshun New Materials, has entered into a toll-processing agreement concerning lithium iron phosphate with Qinghai Fudi, which is a wholly-owned great-granddaughter company of BYD. (Here, using "great-granddaughter" instead of "granddaughter" to more accurately reflect the multi-layered corporate relationship, though in real business contexts, such precise family-tree terms are rare; "firm" is a more natural alternative to "company" in this context.) The pact specifies an annual processing capacity of 80,000 tons and is set for a 2-year duration, with both parties having the right to negotiate a 1-year extension once the initial term concludes. The execution of this agreement is anticipated to yield a favorable impact on the company's financial performance, signifying market acknowledgment of the company's prowess in lithium iron phosphate production technology and the quality of its products. Additionally, it will aid the company in amassing technical expertise, broadening its customer reach, and strengthening its market standing. Xingfa Group is predominantly involved in the fine phosphorus chemical sector and has been vigorously pivoting towards the new energy industry in recent times. From January to September 2025, the revenue generated from the new energy segment constituted roughly 3% of the total. The signing and subsequent implementation of this agreement will expedite the utilization of production capacity within the company's new energy division, in line with the company's growth strategy and the interests of its shareholders.