Gelonghui May 21 丨 Aide New Energy (02623battlezonearcadegame.HK) AnnouncementbattlezonearcadegameOn May 21, 2024, the seller, Shandong Xingsheng Mining Co., Ltd.(an indirect wholly-owned subsidiary of the company) and the buyer, Shandong Dane Mining Technology Co., Ltd., entered into an asset transfer agreement, pursuant to which the seller conditionally agreed to sell and the buyer conditionally agreed to acquire the underlying assets at a consideration of RMB 3battlezonearcadegame.14 billion yuan. "Subject assets" refer to the mining rights of Yangzhuang Iron Mine (including the concentrator), the prospecting rights of Qinjiazhuang Ilmenite, the production land (including lease and contract land), houses, production facilities of Yangzhuang Iron Mine (included in the fixed assets catalog of Yangzhuang Iron Mine and the concentrator), etc.
Yangzhuang Iron Mine has been suspended since October 2015. During this period, Shandong Xingsheng has to pay relevant expenses for the underlying assets to maintain the survival of the enterprise. During this period, there is only income from trade and processing production lines, and the mine's operations are difficult. As of the date of this announcement, the retained reserves of Yangzhuang Iron Mine are 37.1 million tons. The net proceeds from the disposal are approximately RMB289 million. The company plans to use the proceeds to invest in the Zhuge Shangyu Titanium Iron Mine Project owned by Shandong Xingsheng, a major strategy of the Group, and increase the mining and production line construction scale of the Zhuge Shangyu Iron Mine Project to repay shareholders with better economic benefits from ferrotitanium production.
The board of directors believes that the sale is in line with the group's strategy to focus on the Zhuge Shangyu ilmenite mine. In addition, the Board believes that the disposal provides a good opportunity for the Company to (i) improve the Group's financial positionbattlezonearcadegame;(ii) realises its investment in the underlying assets in a timely manner.
