China First Heavy Machinery Co., Ltd. issued a notice on the completion of the transfer of 38.74% equity of Zhongpin Sunde International Development Co., LTD., stating that on October 21, 2021, the transfer of 38.74% equity of Zhongpin Sunde has been completed, and Zhongpin Sunde has become an important shareholding company of the company.
On June 27, 2021, The 19th meeting of the fourth Board of Directors of China First Heavy Machinery Co., Ltd. was held to review and approve the Proposal of China First Heavy Machinery Co., Ltd. on the acquisition of 38.74% equity of Zhongping Sunde International Development Co., Ltd. held by China First Heavy Machinery Group Co., Ltd. and constitute a related Party Transaction. Agree that the company shall acquire 38.74% equity of Zhongpin Sunde International Development Co., LTD. (hereinafter referred to as Zhongpin Sunde) held by the company from its related party China First Heavy Group Co., LTD. (hereinafter referred to as "First Heavy Group") at the consideration of RMB 2,391,563,100.
According to the announcement, Zhongpin Sunde is an investment holding platform jointly funded by Yizhong Group and Jiangsu Delong, and its main assets are 59.37% of Indonesia Delong. Delong Indonesia's main business is the processing and refining of mining products, the main product is nickel iron. The company's main raw materials are laterite ore, purchased from Indonesia; The main products are exported to China. The company adopts mature and advanced "rotary kiln-electric furnace (RKEF)" production process to smelting laterite ore into nickel-iron.
After the completion of the transaction, China First Zhong Zhong holds 38.74% of the equity of Zhongpin Sunde and indirectly owns 23% of the equity of Indonesia Delong Nickel Co., LTD.
