Gotion High-Tech has made public that its majority-owned subsidiary, Jiangsu Gotion, is set to bring in a strategic partner, the Nanjing Luhe District Xinzhi Heneng Equity Investment Partnership, via a capital increase and share dilution strategy. In a recent development, Gotion High-Tech, Xinzhi Heneng, and Jiangsu Gotion have formalized a capital increase and supplementary pact in Nanjing. Under the terms of this agreement, the principal shareholder and the investor will pool their resources to finance the 'Smart Manufacturing Base Project for New Lithium-Ion Batteries (20GWh).' Specifically, Gotion High-Tech will contribute RMB 300 million in two separate installments, whereas the investor will infuse RMB 2 billion, also in two phases. Notably, Gotion High-Tech has relinquished its pre-emptive subscription rights. It's important to highlight that this deal does not entail any related-party transactions or significant asset restructuring. Post-capital increase, Jiangsu Gotion will continue to be consolidated within Gotion High-Tech's financial statements. Additionally, the agreement outlines performance commitments and repurchase provisions spanning from 2027 to 2035. Should Jiangsu Gotion fall short of achieving a qualified Initial Public Offering (IPO) or fail to meet predetermined performance benchmarks, the investor retains the right to demand a repurchase or seek monetary compensation.