GCL TECH (03800) announced on December 8, 2025, that GCL Suzhou, GCL Xuzhou, Cinda, Xinsheng, and Anyi entered into a partnership agreement to form a limited partnership for acquiring a 42.469% stake in the target company, Inner Mongolia Xinyuan Silicon Materials Technology Co., Ltd. Post-acquisition, the target company will remain a non-wholly owned subsidiary of GCL TECH.
According to the agreement, the limited partnership will have a total capital commitment of RMB 2.064 billion. Limited partners GCL Suzhou and Cinda will contribute RMB 760 million and RMB 1.3 billion, respectively, while general partners Xinsheng (as GP1), Anyi (as GP2), and GCL Xuzhou (as GP3) will invest RMB 1 million, RMB 1.5 million, and RMB 1.5 million, respectively. Through GCL Suzhou and GCL Xuzhou, the company will indirectly hold a 36.895% interest in the partnership.
Upon establishment, the partnership will enter share purchase agreements with Hongyuan Green Energy and Tibet Ruihua to complete the acquisition at a total consideration of RMB 2.01 billion. A series of ancillary agreements will also be executed in connection with the transaction.
The target company, incorporated in 2021 in China, specializes in R&D, production, and sales of granular silicon, along with supporting new energy businesses. As of the announcement date, GCL TECH holds a 57.531% stake in the target company via subsidiaries, maintaining its status as a non-wholly owned subsidiary. Post-acquisition, the target will continue to be consolidated into the group’s financial statements.
The establishment of the partnership and the acquisition align with GCL TECH’s strategic development, offering a favorable investment opportunity to enhance capital appreciation.