NEW YORK, NY / ACCESSWIRE / August 16, 2021 / Graphex Group Limited ("Graphex" or the "Company") (HKSE:6128)(OTCQX:GRFXY), a manufacturer of Lithium-Ion battery-grade spherical graphite which also provides graphene technology for the renewable energy sector, is pleased to provide a corporate update.

Submission of draft Form F-1 on confidential basis for the initial public offering of its American Depository Shares and intent to list on a U.S. national exchange

Graphex has previously announced that it has confidentially submitted a draft registration statement on Form F-1 with the U.S. Securities and Exchange Commission ("SEC") for a proposed initial public offering of its American Depository Shares ("ADS"), representing the Company's ordinary shares (the "Offering"). The number of ADS to be offered and the price range for the Offering have not yet been determined. The Offering is subject to the registration statement being declared effective by the SEC and approval by The Stock Exchange of Hong Kong Limited in compliance with the requirements under the Listing Rules and the receipt of shareholders' approval to issue the shares underlying the ADR.

In connection with the Offering, Graphex intends to apply for listing of the ADS on a national exchange in the U.S. The Offering is subject to market conditions, and there can be no assurance as to whether or when the Offering may be completed, or as to the actual size or terms of the Offering, or that the Company will be able to list the ADS on any such exchange. During the SEC review and exchanges' application process, the Company's ADR will continue to trade on the OTCQX under its current symbol, GRFXY.

Andross Chan, Chief Executive Officer and Director: "We are delighted to announce the submission of draft Form F-1 with the SEC on confidential basis and believe that the offering and a related U.S. stock exchange listing will expand Graphex's visibility to a broader range of investors, improve liquidity, raise awareness in our battery-grade spherical graphite processing technology, elevate our corporate profile and create shareholder value. We believe that listing on a U.S. stock exchange is a natural progression for Graphex Group and our shareholders."

International expansion with technology as a service model

As part of our growth strategy, we are leveraging our technology and experience in the production of battery-grade spherical graphite by assisting graphite miners and graphite rich countries to build out spherical graphite production capacity. Using a technology as a service model we are forging commercial alliances in key strategic graphite locations within the United States, Canada, Europe, and Africa. Whilst in parallel we continue to execute our own capital expansion plans in China, with a roadmap to grow spherical graphite production capacity from 10,000 metric tons to 40,000 metric tons over the next three years.

Utilizing our spherical graphite processing technology and proprietary expertise, our technology as a service model is to align with and assist graphite miners process and upgrade raw graphite into uncoated natural spherical graphite or coated natural spherical graphite. With proprietary knowledge in manufacturing battery-grade spherical graphite, at volume, with high yield and at vehicle OEM quality levels, we believe we can create additional shareholder value by marketing our proprietary knowledge and technology.

Daniel Nye, Chief Strategy Officer: "While we continue to invest into expanding our production capacity in China, we are excited to market our spherical graphite production skill and technology as a service to graphite producers, allowing us to accelerate our growth in key strategic markets. We believe the worldwide opportunity for spherical graphite is sufficiently large to support many varied producers. Providing technology services to emerging raw graphite producers will help us harness this global opportunity."

Analysts upgrade Li-Ion battery demand to pass 2TWh by 2030

The growth of electric vehicles and energy storage is the key driver for Lithium-Ion battery demand, and powers growth for our Lithium-Ion battery-grade spherical graphite. According to Bloomberg New Energy Finance, by 2030 annual demand for Lithium-Ion batteries will surpass 2.7TWh. This latest forecast is 35% higher than last year's outlook, largely due to higher demand from electric vehicles. Spherical graphite demand for Lithium-Ion batteries is expected to rise by 37% to 446,914 metric tonnes in 2021. BloombergNEF (July 1^st, 2021) estimates that demand will grow by 297% by the end of the decade. Furthermore, UBS estimates that natural flake graphite demand will have a 3.7 million tonne deficit by 2024, with the deficit representing 37% of the overall market.

Industry leading Li-Ion battery research

Graphex continues to invest in next generation battery and graphene technology. The Company is researching methods to improve the cold weather performance of Lithium-Ion battery cells. Our research is investigating preparation methods and industrial treatments to improve low temperature performance, which is a key attribute to the wider adoption of electric vehicles. We also seek to continuously improve our spherical graphite production process. In addition to electric vehicle applications, we are conducting solar cell research to enhance photoelectric performance utilizing graphene composites.

Completes change of company name

We were pleased to announce approval of our name change at our extraordinary general meeting; the certificate of incorporation certifying the name change from Earthasia International Holdings Limited to Graphex Group Limited was issued on April 9, 2021. The name change did not affect any rights of any shareholders, the Company's daily business operations or its financial position. Instead, the name was changed to more accurately reflect Graphex Group's focus on battery-grade spherical graphite research, manufacturing and development and further to capitalise on the exceptional opportunities the renewal energy sector presents.

Corporate structure allows unlimited foreign ownership

While Graphex Group maintains battery-grade spherical graphite subsidiary in Heilongjiang province, we would like to confirm that we are not structured as a Chinese variable interest entity ("VIE"). Instead, since inception, all our Chinese subsidiaries have been incorporated as Wholly Owned Foreign Enterprises ("WOFE") and have been registered with relevant authorities in China.

About Graphex Group

We are one of the major manufacturers of spherical graphite, a key material for production of Lithium-Ion battery cells. Our Material is used to form the anode of Lithium-Ion battery cells. Lithium-Ion batteries are used in electric vehicles and as energy storage solutions for renewable energy farms. The anode is a key component in the battery, where charged energy is stored within the anode in the form Lithium-Ions. We are also a developer of graphene technologies.

Spherical graphite represents the majority of the Company's 2020 revenues of US$50 million and generates a positive EBITDA ("Earnings Before Interest Taxes Depreciation and Amortization"). We currently produce about 10,000 metric tons per annum of spherical graphite at our manufacturing facility in Heilongjiang Province, strategically located near one of the world's largest high-quality natural graphite mines for our raw material.

Safe Harbour Statement

This press release is being made pursuant to, and in accordance with, Rule 135 under the Securities Act of 1933, as amended (the "Securities Act"), and shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act.

Statements about the Company's future expectations and all other statements in this press release other than historical facts, are 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such forward-looking statements be subject to the safe harbours created thereby.

The above information contains information relating to the Company that is based on the beliefs of the Company and/or its management, as well as assumptions made by any information currently available to the Company or its management. When used in this document, the words 'anticipate,' 'estimate,' 'expect,' 'intend,' 'plans,' 'projects,' and similar expressions, as they relate to the Company or its management, are intended to identify forward-looking statements. Such statements reflect the current view of the Company regarding future events and are subject to certain risks, uncertainties and assumptions, including the risks and uncertainties noted. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, intended or projected. In each instance, forward-looking information should be considered in light of the accompanying meaningful cautionary statements herein. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, the impact of competitive services and pricing and general economic risks and uncertainties.

Information from third sources identified in this release are based on published reports for such information and we have assumed the accuracy of such reports without independent investigation or inquiry.

This communication is for informational purposes only and is neither an offer to sell nor a solicitation of an offer to purchase any securities of the Company, including but not limited to its American Depositary Shares.

Information made available on the Company's above-referenced website is not a part of any disclosure made or to be made by the Company with respect to any offer to sell or solicitation of an offer to purchase any securities of the Company and are not party of any filings by the Company with the U.S. Securities and Exchange Commission.

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