Shenghe Resources (Lianyungang) New Material Technology Co., Ltd announced that it has entered into a purchase agreement to receive CNY 647,777,000 in an equity round of funding on June 13, 2022. The transaction will include participation from returning investor Shenghe Resources Holding Co., Ltd for CNY 384,666,200 and new investor CNNC Huachuang Rare Materials Co., Ltd for CNY 263,110,800. The company will receive CNY 131,555,400 from CNNC Huachuang Rare Materials Co., Ltd and CNY 187,333,100 from Shenghe Resources Holding Co., Ltd in phase 1 and CNY 131,555,400 from CNNC Huachuang Rare Materials Co., Ltd and CNY 197,333,100 from Shenghe Resources Holding Co., Ltd in the phase 2. Phase 1 will be completed within 20 working days after the entry into force of this agreement and phase 2 will be completed before December 31, 2022.

Post the closing of the transaction, Shenghe Resources Holding Co., Ltd will hold 60% stake in the company and CNNC Huachuang Rare Materials Co., Ltd will hold 40% stake and the registered capital of the company will increase from CNY 10,000,000 to CNY 657,777,000. The transaction is subject to the approval of the shareholders of Shenghe Resources Holding Co., Ltd. The transaction was approved at the 8th board of directors and 3rd meeting of the 8th Supervisory Committee of Shenghe Resources Holding Co., Ltd. The transaction was approved by the shareholders of the company and was approved by the State-owned Assets Supervision and Administration Regulations.