Greenbeauty: subsidiary companies Green Tungsten Resources to increase capital and shares

Recently (December 3), Grammy issued an announcement saying that in order to promote social capital to participate in the waste recycling business of Greenmei Co., Ltd. (hereinafter referred to as "Grimme" or "the company"), strengthen the company's capital strength to develop new energy materials business, better enhance the company's core value, create a world-class strategic tungsten resource recycling industry, promote green development, and serve the national carbon peak carbon neutralization strategy, On December 3, 2021, the 38th meeting of the Fifth session of the Board of Directors and the 25th meeting of the Fifth Board of Supervisors examined and adopted the "proposal on Capital increase, share expansion and related transactions of Hubei Green Tungsten Resources Recycling Co., Ltd., a subsidiary company." Agree with Jingmen Greenmei New Materials Co., Ltd., a wholly-owned subsidiary of the company, to increase capital and shares of Hubei Green Tungsten Resources Recycling Co., Ltd. (hereinafter referred to as "Green Tungsten Resources" or "Target Company") and Jingmen Jingmen New Equity Investment Fund Partnership (limited partnership), Jingmen Kexin enterprise management partnership (limited partnership), Jingmen Xinwo enterprise management partnership (limited partnership), Jingmen Yirui enterprise management partnership (limited partnership), Jingmen Xintuo enterprise management partnership (limited partnership), Zhang Yi, Shenzhen Baiyuansheng investment consulting partnership (limited partnership), Li Yan, Azeroth (Shenzhen) investment partnership (limited partnership), Sanya deep research value investment partnership (limited partnership), Jingmen Zebo enterprise management partnership (limited partnership), Ma Huaiyi, Jingmen Huifeng, New Materials Technology Development Center (limited partnership) and Nanchang Zhongli Enterprise Management Consulting Center (limited partnership) jointly signed the Hubei Green Tungsten Resources Recycling Co., Ltd. (hereinafter referred to as "this Agreement"), The new capital contribution totaled 417.8867 million yuan.

After the completion of this capital increase, the proportion of shares held by the company through Jingmen Green Mei New Materials Co., Ltd. will be changed from 100% to 53.62%, and Green Tungsten Resources will still be the company's holding subsidiary. Since Mr. Zhang Kun, executive partner of Jingmen Xinwo enterprise management partnership (limited partnership), is the deputy general manager of the company, Mr. Tang Dan, executive partner of Jingmen Yirui enterprise management partnership (limited partnership), is the company supervisor, and Mr. Wang Qiang, executive partner of Jingmen Xintuo enterprise management partnership (limited partnership), is the deputy general manager of the company. Mr. Jiang Zhenkang, Executive partner of Azeroth (Shenzhen) Investment Partnership (Limited Partnership), is the son of Ms. Wang Min, a director of the company. therefore, in accordance with the relevant provisions of the rules governing the listing of shares on the Shenzhen Stock Exchange (hereinafter referred to as the "Stock listing rules"), this transaction constitutes a related party transaction.

On December 3, 2021, the 38th meeting of the Fifth session of the Board of Directors and the Twenty-fifth meeting of the Fifth session of the Supervisory Committee of the Company examined and passed the proposal on Capital increase, share expansion and related transactions of Hubei Green Tungsten Resources Recycling Co., Ltd., a subsidiary company. Ms. Wang Min, the affiliated director, has avoided voting, the independent director has expressed his prior approval and independent opinion, and the sponsor has issued a verification opinion. In accordance with the rules for the listing of shares, the measures for the Administration of Major assets reorganization of listed companies, the articles of Association and other relevant laws and regulations, this transaction does not constitute a major asset reorganization and does not need to be approved by the relevant departments. nor does it need to be submitted to the general meeting of shareholders of the company for examination and approval.

The basic information of the subject matter of the transaction

Company name: Hubei Green Tungsten Resources Recycling Co., Ltd.

Date of establishment: July 22, 2011

Legal representative: Feng Hao registered capital: 30.8 million yuan

Registered address: no. 8 Changqing road, Longdao district, Jingmen city

Main business: recycling of waste cemented carbide products and waste tungsten rare metal products, manufacture and sales of tungsten powder materials and ammonium paratungstate, export of tungsten recycled products. After inquiry, green tungsten resources do not belong to the person to be executed in breach of trust.

Impact on the company

Promoting social capital participation in waste recycling business and expanding capital sources and capital strength to rapidly develop Indonesian nickel resources and ternary precursors and other new energy business is an important development strategy being implemented by the company. will effectively enhance the company's business competitiveness and core values. The capital increase and share expansion of tungsten recovery business is led by the government investment platform, with the participation of the core team and social capital, which not only gathers 417.8867 million yuan of capital, expands the company's overall capital strength for the development of "urban mines + new energy materials", but also helps to fully mobilize the enthusiasm of all parties' capital, the management and core staff of the company and its subsidiaries, and aims to promote the company's tungsten resources recovery business to adopt a circular economy model. Establish a directional cycle with the upstream and downstream of the tungsten industry chain to create a life cycle value chain of strategic tungsten resources. Focus on the development of high-performance tungsten carbide and tungsten powder materials, create globally competitive high-tech recycling enterprises of strategic tungsten resources, promote green development, and serve the national carbon peak carbon neutralization strategy.

After this capital increase and share increase, the company's shareholding in Green Tungsten Resources will be changed from 100% to 53.62%. This equity transfer does not affect the company's control over green tungsten resources, is beneficial to the operation and long-term development of the company and green tungsten resources, and does not harm the interests of the company and all shareholders.

This related party transaction will not adversely affect the financial situation and operating results of the company, does not affect the independence of the company, and does not harm the interests of shareholders, especially the interests of minority shareholders.