Sunstone Development to raise investment in carbon materials project

Sunstone Development has adjusted its implementation plan for an external investment and intends to sign a capital increase agreement with Huayang Group to inject additional funds into its wholly-owned subsidiary, Sunstone Huayang. The registered capital of Sunstone Huayang is tentatively set at RMB360 million (USD53.15 million), of which the company will contribute RMB305 million (USD45.03 million) in cash, and Huayang Group will contribute RMB54 million (USD7.97 million). Upon completion of the capital increase, the company will hold an 85% stake, while Huayang Group will hold 15%. The investment will be used to build a 200ktpa high-current-density energy-saving carbon materials project with a waste heat power generation facility. The total estimated investment for the project will not exceed RMB 900 million (USD132.87 million).