Disposal Proposal: TIANQI LITHIUM's board has approved a proposal to dispose of part of its equity interest in SQM, planning to sell up to approximately 3.566 million Class A shares, which is about 1.25% of SQM's total shares.

Regulatory Compliance: The share disposal will be conducted in a manner that avoids triggering the need for shareholder approval under the relevant Listing Rules and regulations.

New Fundraising Plans: TIANQI LITHIUM plans to raise approximately USD375 million through the placement of new H-shares and the issuance of zero-coupon convertible bonds due in 2027.

Equity Dilution Impact: The share placement is expected to cause an equity dilution of about 3.7-3.8%, while full conversion of the convertible bonds could lead to an additional dilution of 2.9-3.2%.

M&A Activity Speculation: JPMorgan suggests that the likelihood of TIANQI LITHIUM pursuing mergers and acquisitions has increased following the fundraising activities.

Stock Price Outlook: The broker has set a target price of HKD52 for TIANQI LITHIUM, maintaining a Neutral rating, while cautioning investors about potential short-term pressure on the stock due to combined dilution effects.

Trading Halt: TIANQI LITHIUM's H shares trading was halted at 9:04 a.m. for an unannounced reason, with short selling amounting to $9.31 million and a ratio of 6.206%.

New Share Issuance: The company plans to issue 65.05 million new H shares at a 9% discount and zero-coupon convertible bonds, aiming to raise approximately HKD5.83 billion.

Share Disposal Proposal: TIANQI LITHIUM's Board approved a proposal to dispose of up to 3.566 million Class A shares in SQM, representing 1.25% of SQM's total shares.

Recent Share Sales: The company has already sold over 748,000 Class B shares in SQM, amounting to 0.29% of SQM's total shares, through its subsidiary Tianqi Lithium HK.

Current Holdings: TIANQI LITHIUM currently holds approximately 62.5566 million Class A shares in SQM, which is about 21.9% of SQM's total shares.

Management Authorization: The Board has authorized management to sell all of its SQM Class A shares within the next year.

Share Placement Announcement: TIANQI LITHIUM plans to place 65.05 million new H-shares at HKD45.05 per share, a 9% discount from the previous closing price of HKD49.5.

Convertible Bonds Issuance: The company intends to issue USD-settled zero-coupon convertible bonds due 2027, with a total principal amount of RMB2.6 billion and an initial conversion price of HKD49.56 per share.

Impact of Conversion: Full conversion of the bonds will result in approximately 59.09 million new shares, representing 3.48% of the enlarged total issued shares.

Expected Proceeds: The net proceeds from both the share placement and convertible bond issuance are anticipated to be nearly HKD5.829 billion.