Stock Code: 300890 Stock Abbreviation: XFH
Convertible Bond Code: 123225 Convertible Bond Abbreviation: XFH Convertible Bond
Shanghai XFH Technology Co., Ltd. (Floor 1, No. 11, Lane 635, Xiaoyun Road, Baoshan District, Shanghai)
2026 Annual Feasibility Analysis Report on the Use of Proceeds from the Issuance of A-Shares to Specific Targets (Revised Draft)
June 2026
Shanghai XFH Technology Co., Ltd. (hereinafter referred to as the "Company") intends to raise funds through the issuance of A-shares to specific targets. The proceeds from this issuance will be used for the project with an annual output of 93,000 tons of new energy battery anode materials.
The Company has prepared this feasibility analysis report on the use of proceeds from the 2026 issuance of A-shares to specific targets. Unless otherwise specified, terms used in this report have the same meanings as those defined in the "Shanghai XFH Technology Co., Ltd. 2026 Annual Plan for the Issuance of A-Shares to Specific Targets."
I. Use Plan for Proceeds from this Issuance
The total amount of funds raised from this issuance of shares to specific targets shall not exceed RMB 600,000,000.00 (inclusive). After deducting issuance expenses, the funds will be invested in the following project:
| Project Name | Total Project Investment | Proposed Amount of Proceeds to be Invested |
|---|---|---|
| Annual output of 93,000 tons of new energy battery anode materials project | 136,000.00 | 60,000.00 |
| Total | 136,000.00 | 60,000.00 |
Under the premise of not changing the intended investment projects, the Board of Directors may, as authorized by the General Meeting of Shareholders, adjust the amount of proceeds invested in the aforementioned projects. If the actual proceeds after deducting issuance expenses are less than the total proposed investment, the Company will adjust the priority and specific investment amounts for each project based on the net proceeds and the urgency of the projects. Any shortfall will be covered by the Company through self-raised funds. Before the proceeds are in place, the Company may use its own funds or self-raised funds to make advance investments based on the actual progress of the projects, which will be replaced according to relevant procedures once the proceeds are available.
II. Necessity and Feasibility of the Investment Projects
Necessity of the Investment Projects
- Consolidating the core business and following the new development cycle of the new energy battery industry
Since its inception, the Company has adhered to the research, development, production, and sales of lithium-ion battery anode materials as its core business. Prior to 2024, the Company experienced the vigorous development of the lithium-ion battery industry driven by consumer electronics and new energy vehicles, which promoted the continuous expansion of the Company's business scale. Since 2025, influenced by the continuous advancement of global energy transition, the explosion of storage demand in new AI data centers, and the strong recovery of overseas residential storage, the global lithium-ion battery industry has entered a new cycle of high-speed development.
In 2025, global lithium battery shipments reached 2,280.5 GWh, a year-on-year increase of 47.6%, accelerating growth. Among them, China's lithium battery shipments reached 1,888.6 GWh, a year-on-year increase of 55.5%. In 2025, power batteries remained the most important component of global lithium battery shipments, accounting for 66% with shipments of 1,495.2 GWh, a year-on-year increase of 42.2%. The significant growth in global lithium battery shipments in 2025 mainly came from the energy storage battery sector. In particular, the pull of demand from the overseas energy storage market drove global energy storage battery shipments to 651.5 GWh, a year-on-year increase of 76.2%. Energy storage battery shipments accounted for 29% of global shipments, and the weight of energy storage as a second growth pole continues to rise.