Huayou Cobalt Industry issued an announcement that the board of directors agreed to merge its wholly-owned subsidiary Huahai New Energy by Quzhou, a wholly-owned subsidiary of New Energy, on December 31, 2020. After the completion of the absorption and merger, Quzhou, as the absorbing and merging party, continues to operate and acquires all the assets, liabilities and personnel of Huahai New Energy, and Huahai New Energy is cancelled according to law as the merging party.
The absorption and merger will help the company to reduce operating and management costs and improve operational efficiency. New Energy Quzhou is a wholly-owned subsidiary of the company, and Huahai New Energy is a wholly-owned subsidiary of New Energy Quzhou, and its financial statements have been incorporated into the scope of the company's consolidated statements, and this absorption and merger does not have a material impact on the normal operation and profitability of the company, and the merger does not constitute related party transactions and significant asset restructuring.
