Chihong Zinc & Germanium Co., Ltd. announced in the evening that the company plans to acquire 65% and 35% equity of Qinghai Hongxin held by Yuntong Group and Yuntong Zinc Industry respectively with a cash consideration of RMB 109,236.19 million. After the completion of the acquisition, the company will directly hold 100% equity of Qinghai Hongxin, and Qinghai Hongxin will become a wholly-owned subsidiary of the company and be included in the consolidated financial statements of the company.

The company stated that this transaction is beneficial for further addressing the inter-industry competition between the company and Aluminum Corporation of China Limited and China Copper Industry, and can effectively reduce the company's daily related transactions with China Copper Industry. After the completion of this transaction, Qinghai Hongxin will become a wholly-owned subsidiary of the company and be included in the consolidated financial statements of the company, which will help further enhance the company's competitiveness and is in line with the company's development strategy.