Editor: Lena
Puyang Punai High Temperature Materials (Group) Co., Ltd. (hereinafter referred to as the 'Company') convened the 15th meeting of the Fifth Board of Directors on May 28, 2020, and reviewed and approved the "Proposal on the Sale of Part of the Equity of the Subsidiary". The relevant matters are now announced as follows:
Transaction Overview
The company and Haicheng Huayu High Temperature Refractory Furnace Charge Co., Ltd. (hereinafter referred to as 'Huanyu High Temperature') recently signed the 'Equity Transfer Agreement', the company plans to transfer its wholly-owned subsidiary Haicheng Linli Mining Co., Ltd. (hereinafter referred to as 'Linli Mining') 49% of the shares were sold to Huayu High Temperature. The transfer price was 51.45 million yuan.
This transaction aims to bring in powerful strategic investors in Liaoning Haicheng area, work with the company to integrate local mines, expand the annual mining scale of Linli Mining Mining Warrants and other mine expansion work. After the completion of this transaction, the company holds a 51% stake in Linli Mining, which is still the company's controlling subsidiary. This transaction does not constitute a related party transaction, nor does it constitute a major asset restructuring stipulated in the 'Management Measures for Major Asset Restructuring of Listed Companies', without the approval of the relevant authorities.
According to the 'Shenzhen Stock Exchange Stock Listing Rules' and the 'Articles of Association' and other relevant regulations, this transaction is within the scope of the approval authority of the board of directors and does not need to be reviewed and approved by the general meeting of shareholders.