Mount Qomolangma in Tibet will hold a 54% stake in Hong Kong to promote the expansion and development of Lithium Salt Lake.

On the evening of January 4, Mount Qomolangma in Tibet announced that the company had acquired its 9 per cent stake in Hong Kong, where LEADING RESOURCES GLOBAL LIMITED (is registered, with a registered capital of HK $10 million and its Chinese name "Tibet Everest Resources (Hong Kong) Co., Ltd." (referred to as "Everest Hong Kong") for US $7.14 million in cash.

According to the announcement, so far, the remaining financial assistance provided by Lingyuan to Everest Hong Kong is US $18.6057 million, of which its own capital has contributed US $5 million. Tazhong Mining Co., Ltd. (hereinafter referred to as "Tazhong Mining"), a wholly-owned subsidiary of the company, has a pad of US $13.6057 million. With the completion of this acquisition, the company will inherit the creditor's rights and debts related to the holding of Hong Kong equity in Mount Qomolangma.

Compared with the beginning of the acquisition, the expansion and development of the Argentine lithium salt lake project, especially the SDLA project, has gradually met the realistic conditions: 1 the in-depth supplementary exploration results have further enhanced the resource endowment, the proportion of identified and controlled resources has increased from 50% to more than 80%, and the development prospect has become increasingly clear. (2) the feasibility study report on the annual expansion of 25000 tons of lithium carbonate equivalent lithium salt has been completed, and the research work of the project construction is relatively sufficient. (3) as the first phase (pilot test), the production and construction of the 2500-ton lithium-rich brine production project has been completed through the construction of a joint venture, which verifies the reliability of salt lake resources and the feasibility of related production processes. 4 the Argentine project company has submitted an environmental impact assessment report to the competent department of the local government and is in the stage of examination and approval of the EIA permit.

According to Mount Qomolangma in Tibet, the market for new energy lithium-electric cars is becoming more and more mature, the demand for upstream lithium resources in related industrial chains is increasing, and the necessity of project expansion and development is gradually emerging. Therefore, in order to actively implement the overall layout strategy of the new energy industry, combined with the exit intention of the financial investor Leader Global, the company chose to give priority to the acquisition of all shares held by Lingyuan Global in Hong Kong in order to control the project. Combined with the market opportunities in the post-epidemic era, the company will orderly promote the production expansion and development of the subordinate Lithium Salt Lake SDLA project, and strive to cultivate new growth points for the company.

Upon completion of the acquisition, Tibet's Mount Qomolangma will hold a 54% stake in Hong Kong and become its controlling shareholder, and Mount Qomolangma Hong Kong will become a subsidiary of the company's consolidated statements.

Qomolangma in Tibet said that according to the established "one body and two wings" (basic non-ferrous metals + new energy, new materials) industry development strategy, the company pays attention to the new energy industry chain and its value chain characteristics. After the completion of this acquisition, the company will realize the holding of Mount Qomolangma in Hong Kong, which will be conducive to the upgrading of the company's resources strategy, effectively promote the follow-up process of relevant investment projects, and help to improve the company's ability to resist cyclical risks in the existing non-ferrous metals industry.

It is worth noting that in April 2018, Tibet's Everest, together with its financial investment partner, acquired and privatized a Canadian listed company for US $206.7 million to take full control of its two lithium salt lake development project companies in Argentina. Officially entered the field of lithium resources development in the upper reaches of the new energy industry.

According to the third-quarter report disclosed by Mount Qomolangma in Tibet, the company's operating income from January to September was 851 million yuan, down 36.7 percent from the same period last year; the net profit belonging to shareholders of listed companies was 72.8229 million yuan, down 86 percent from the same period last year; and basic earnings per share was 0.08 yuan.

In December 2020, Mount Qomolangma in Tibet said in an interactive exchange with investors that the resumption of work and production in Tazhong Mining is in an orderly process, and the current capacity utilization rate is about 50%. At the same time, the progress of the lithium salt lake project in Argentina is slow due to objective factors. Due to the influence of objective factors, the company expects its operating performance to decline by more than 50% in 2020 compared with the same period last year.

With regard to the current progress in lithium salt development, Mount Qomolangma in Tibet said that the company already has 2500 tons / year of lithium-rich brine production capacity. However, due to the influence of objective factors, it has not yet entered the sales stage.

In addition, Qomolangma in Tibet also said that the company is always optimistic about the prospect of global lithium resources in the future. If the conditions are ripe, the company will choose appropriate technology and product programs for development and increase its production capacity to 25000-30000 tons of LCE (lithium carbonate equivalent) / year through investment and construction, making it a new profit growth point for the company.