According to the First Financial Report, on February 25th, 2022, Fujian Zhonghe Co., Ltd. (hereinafter referred to as Zhonghe and the Company) announced that its subsidiary Makan Jin Xin Mining Co., Ltd. (hereinafter referred to as Jin Xin Mining) introduced Hainan Guocheng Changqing Investment Partnership (Limited Partnership) (hereinafter referred to as Guocheng Changqing) and Guangzhou Guocheng An Deyu Co., Ltd.
In this capital increase, the appraised value of all the rights and interests of Jin Xin Mining is 428,804,200 yuan. Based on this valuation, Guocheng Changqing and Guocheng An Deyu increased their capital in Jin Xin Mining with cash of 420,227,200 yuan and 8,577,000 yuan respectively. After the completion of capital increase, the original shareholder Aba Zhonghe New Energy Co., Ltd. changed its shareholding ratio in Jin Xin Mining from 98% to 50%, and remained the largest shareholder; Guocheng Changqing holds 48% of the shares; The shareholding ratio of Guocheng Andeyu is 2%, and the registered capital of Jin Xin Mining will be changed to11878,800 yuan. This capital increase may help to restart the lithium mine resources in Danba, Marcand, and provide guarantee for the supply of lithium resources in China.