RF Semi Completes Domestic Distribution Rights Transfer of LFP Batteries from Jinpyeong Electronics

RF Semi announced on the 5th that the domestic transfer value of the lithium iron phosphate (LFP) battery rights from Jinpyeong Electronics was evaluated at 13 billion KRW. RF Semi will officially start its secondary battery business by acquiring these rights.

RF Semi stated, "Since this is a newly entered business, Han Young Accounting Corporation conservatively evaluated the business unit's value limited to the domestic market first," adding, "Considering the potential for expansion and business feasibility of the rights worldwide beyond China in the future, the value is expected to increase significantly."

Han Young Accounting Corporation, responsible for the valuation, limited the LFP battery rights transfer value to the domestic market initially. The cumulative sales of RF Semi's new business division over the next 10 years were estimated to be approximately 2.3 trillion KRW.

The company said, "The annual supply volume guaranteed by the initial Sanxi Jinpyeong ranges from 50 million cells to a maximum of 100 million cells, which corresponds to sales of 3 trillion to 6 trillion KRW over 10 years," and added, "Although the evaluation result falls short of the business target level, we will prove the business feasibility through thorough preparation and securing sales channels."

Earlier, Jinpyeong Electronics completed the payment for a 20 billion KRW third-party allotment capital increase on the 1st and became the largest shareholder of RF Semi.

Meanwhile, the 60 billion KRW convertible bonds scheduled to be paid by the Black Pearl 1, 2, and 3 funds on the 2nd have been postponed to the 20th. This is to conduct negotiations for securing future management rights, including changes in Jinpyeong Electronics' shareholding ratio upon conversion and Jinpyeong's participation in the convertible bonds.

An RF Semi official emphasized, "In relation to the large-scale LFP battery cell supply contract, inquiries from global companies are continuing," and added, "Through the full-scale launch of the secondary battery business this year, we will achieve both performance improvement and strengthening of growth drivers."