Three Chinese lithium companies are planning secondary listings in Switzerland, The Paper reported on Wednesday.

These three companies are Keda Industrial Group Co Ltd, Gotion High-tech and Ningbo Shanshan Co Ltd.

Keda announced on April 8 that it planned to terminate the non-public offering of A shares in 2022 and apply for overseas issuance of global depository receipts or GDR and listing on the SIX Swiss Exchange.

Global depository receipts refer to globally issued stocks and bonds that can be traded in two or more financial markets, which can facilitate international investors in stock trading, dividend payment and rights offering.

The newly added A shares of underlying securities represented by the issuance of GDR shall not exceed 100 million shares, which shall not exceed 5.3 percent of the total share capital of the company's ordinary shares prior to this issuance, the report said, citing Keda's announcement.

After issuance expense deduction, the company will use the raised funds from the issuance of GDR to expand its main business and strategic investment business, promote the global layout and supplement the company's operational capital, Keda said.

Keda's stock dilution can be reduced, financing channels can be expanded, and shareholder structure can be improved after GDR issuance overseas, according to a research report by China Fortune Securities.

The business of Keda, which was established in 1992 and listed on the Shanghai Stock Exchange in 2002, covers clean energy environmental protection equipment, lithium battery materials, hydraulic pumps, fluid machinery, smart energy with years of experiences overseas.