Shengtun Mining plans to purchase a large amount of funds to complete the cobalt industry chain

Shengtun Mining announced on the evening of May 4 that the company intends to purchase Lin Fengsheng, Zhuhai Liaozhi, Kelixin, and Minzhuhai Jindu, which are all held by the company, through the non-public issuance of shares to specific targets. 100 % of the equity, the transaction price is 1.2 billion yuan, The issue price is 7.89 yuan/share. After the transaction is completed, Shengtun Mining will directly hold 100 % equity in Kelixin.

Shengtun Mining said that after the completion of the transaction, the industrial chain layout of the company's cobalt materials business will be further improved. At present, the main business of listed companies is non-ferrous metal mining and selection business, metal industry chain value-added service business, and cobalt material business. The company started its investment in Congo (Gold) in 2016 and is currently actively constructing a wet production line of 1 ton of electric copper and 3,500 tons of crude cobalt hydroxide (metal amount) in Congo (Kinshasa).

Since its establishment, Ke Lixin has been engaged in the research, development, production and sales of cobalt oxide. It has become a large-scale cobalt material production and processing enterprise in China, with high production management, technology research and development, and brand image. The reputation and strong competitiveness. In 2017, Kelixin's operating income was 502 million yuan, and the net profit attributable to the owner of the parent company was 9229.98 yuan, and the controlling shareholder of Kelixin, the actual controller Lin Fensheng promised to arrive in early 2018. At the end of 2018, the accumulated net profit at the end of 2019 and the end of 2020 was not less than 100 million yuan, 215 million yuan, or 350 million yuan respectively.

China is a country with insufficient cobalt resources. The foreign dependence of cobalt raw materials exceeds 90%. China's demand for cobalt is very strong. In 2017, consumption was close to 6,000 tons, a 26% year-on-year increase. Huatai Securities believes that Kelixin has long been engaged in the research and development, production and sales of cobalt oxide. It has strong competitiveness in technology research and development, raw material supply and customer sales. At present, the annual production capacity of cobalt exceeds 5,000 tons. If the acquisition is completed, it is expected that Shengyu Mining will continue to improve the scale of the medium and long-term cobalt business, and its market share and industry competitiveness will rise to the next level. In addition, the layout of Shengyu Mining's upstream cobalt resources is also increasing.

After the transaction was completed, Shengtun Group's holding of the company's shares was reduced to 21.73 %, and it is still the controlling shareholder of the listed company. Yaoxiongjie's direct and indirect control of the company's shares is 27.20 %, and it remains the actual controller of the company. Linfensheng and Zhuhai Colitai was a person who acted in concert. After the transaction was completed, Lin Fengsheng held 6.86 % of the shares of the listed company, and Zhuhai Colitai held 1.29 %. The other two trading parties, Liaozhi and Minzhuhaijin, held 0.09 % and 0.07 % respectively.

The page contains the contents of the machine translation.