Jinwang undisposed assets recommendation announcement

Hunan Jinwang Bismuth Industry Co., Ltd.

Asset recommendation announcement

On July 3, 2020, the Chenzhou Intermediate people's Court ruled to accept Hunan Jinwang Bismuth Industry Co., Ltd. (referred to as "Jinwang Bismuth Industry"), Hunan Xiangyun Fine Chemical Manufacturing Co., Ltd. (referred to as "Xiangyun Chemical"), Hunan Jinwang rare and valuable Pharmaceutical Co., Ltd. (referred to as "rare Pharmaceutical") merger and restructuring, designated Beijing Deheng Law firm as the manager.

On December 31, 2021, the Chenzhou Intermediate people's Court approved the draft restructuring Plan of Jinwang Bismuth Industry, rare and Precious Pharmaceutical Industry and Xiangyun Chemical Industry. Xiangyun Chemical, rare and Precious Pharmaceutical and Jinwang Bismuth warehousing and Logistics Center have successfully recruited investors. There are still three major asset sectors that have not successfully recruited investors. in order to promote the reorganization process, help enterprises regenerate and safeguard the legitimate rights and interests of creditors, the managers recommend the undisposed assets as follows:

I. Overview of assets

Assets that have not yet been recruited:

1. Jinwang Bismuth Industry Xianxi General Factory

Located in Xianxichong Village, Bailutang Town, Suxian District, Chenzhou City, Hunan Province, with a total area of 262769.7 square feet and a construction area of 69523.73 square meters, there are 12 main production departments, such as smelting workshop, lead electrolysis workshop, anode mud workshop, bismuth electrolysis workshop, bismuth refining workshop, bismuth oxide workshop, silver converter workshop, Guixi smelter workshop, wet process workshop, oxygen production station, sulfuric acid workshop, lead scum reverberator, etc. And equipped with environmental protection workshop, quality department, laboratory, storage department, machine repair workshop and other five auxiliary departments, production office, canteen dormitory and other supporting equipment. The annual capacity of concentrate can reach 100000 tons, high purity bismuth 8000 tons, silver ingots 500 tons, tellurium 300 tons and so on.

According to the evaluation of Waxson (Beijing) International Asset Evaluation Co., Ltd., the net value of Xianxi General Factory is 445.2589 million yuan and the liquidation value is 202.8969 million yuan.

2. Jinwang Hong Kong, Jinwang Europe

Jinwang Hong Kong: on June 6, 2013, Jinwang Bismuth established a wholly-owned subsidiary Hunan Jinwang (Hong Kong) Co., Ltd. (referred to as "Jinwang Hong Kong"), which is located in 31pm F. tower Two,Times Square,1 Matheson Street, Causeway Bay, Hong Kong. The registered capital of the company is 220 million Hong Kong dollars and the actual payment is 209.863 million Hong Kong dollars. it mainly relies on the brand effect of the parent company Jinwang bismuth industry and its important position in the bismuth metal market to open the trading activities of bismuth, lead, silver, antimony and other metal products. To provide services for Jinwang bismuth industry to expand its international business and overseas financing.

According to the third-party audit report, Jinwang Hong Kong has total assets of HK $208.912398 million, total liabilities of HK $30.321254 million and owners' equity of HK $178.591144 million. As Jinwang Bismuth has entered the restructuring process, Jinwang Hong Kong has no actual business and no fixed assets, mainly for its European equity stake in Jinwang.

Jinwang Europe: on September 30, 2015, Jinwang Bismuth acquired the OCM factory through Jinwang Hong Kong and established Jinwang Europe Co., Ltd. (referred to as "Jinwang Europe") with a registered capital of 20.101 million euros. Jinwang Europe is located in 218Avenue Marie Curie 07800 La Voulte-Sur-Rhone France, factory covers an area of 30000 square meters, construction area of 10000 square meters, mainly engaged in bismuth metal and bismuth salt compounds, nitrate compounds production and sales, for France's exclusive bismuth deep processing, nitrate metal salt deep processing enterprises.

According to the third-party audit report, Jinwang Europe has total assets of 15.527537 million euros, total liabilities of 6.244723 million euros and owners' equity of 9.282814 million euros.

3. Jinwang Bismuth Industry headquarters

Located at No. 1 Suoshi Road, Suoxian District, Chenzhou City, Hunan Province, industrial land covers an area of 10400.7 square feet and building area reaches 9463.44 square meters, which is mainly used for office and staff accommodation; residential land covers an area of 11139.2 square meters, which has not yet been developed. Evaluated by Waxson (Beijing) International Asset Appraisal Co., Ltd., the net value of the asset plate is 40.8924 million yuan and the liquidation value is 24.9148 million yuan.

II. Asset advantages

1. Xianxi General Factory

The main results are as follows: (1) the workshop equipment in the factory area is readily available, and the production efficiency is remarkable.

Xianxi General Factory has 12 main production workshops and 5 auxiliary departments, as well as office buildings, staff dormitories, canteens, etc., with integrated production and life and complete functions. At the same time, most of the existing workshop equipment has been well maintained by leasing production mode, which can be put into production with simple overhaul. Compared with rebuilding the new plant, the investment cost is low and the income is fast.

(2) the production process is superb, which can realize the maximum comprehensive recovery of valuable metals.

Jinwang Bismuth Industry oxygen-rich side-blown melting pool smelting is the first in the world, and independently innovates the process "Bismuth Deep processing and Bismuth-containing material Wet Pretreatment Line". The raw materials such as lead-bismuth alloy, anode mud and bismuth-containing polymetallic materials are processed and refined through the whole system. it can not only achieve the production of 99.99% high purity bismuth, but also produce by-products with high economic value, such as silver lead slag, zinc slag, tellurium slag, copper slag and so on.

(3) unique geographical advantages and strong support from government policies.

Chenzhou is rich in mineral resources and is the richest region of bismuth resources in China. Chenzhou is known as "hometown of non-ferrous metals", "hometown of microcrystalline graphite in China", "capital of mineral crystals", "energy base of Hunan" and so on. At the same time, Chenzhou has developed transportation, convenient logistics and obvious location advantages.

The judicial reorganization of Jinwang Bismuth Industry has been highly concerned and strongly supported by the Chenzhou Municipal Party Committee and Municipal Government, which provides a strong guarantee for restructuring investment.

2. Jinwang Europe

(1) the production technology is mature, meets the requirements of environmental protection, and has the authority of processing and trade.

Jinwang Europe has mature nitrate metal solution production and R & D technology, strict compliance with environmental discharge system, classified as SEVESO seuil bas (Seville low-level environmental requirements). The main production of iron, cobalt, nickel, copper, manganese, zinc, aluminum and other metal solutions and crystals related to REACH certification registration (with the right to process or trade).

(2) the geographical location is superior and the cost of electricity is low.

Jinwang Europe is located in the south of France, 1.5 hours drive from Lyon, the European aviation hub city, and 2 hours drive from Marseille, the largest port in France. Water, land and air transportation are quite convenient. At the same time, it is only 5 kilometers away from the hydropower plant and 20 kilometers from the nuclear power plant, with complete power infrastructure, low electricity price and low electricity cost.

(3) it has a stable market and high quality customers, and the market prospect of battery raw materials is good.

Jinwang Europe has long-term cooperation from France, Germany, Italy, the Netherlands, Belgium and other corporate customers, especially nitrate metal solution products, the demand is large, the market is relatively stable.

Jinwang Europe is the exclusive supplier of raw materials for ternary lithium batteries in France and is certified as a strategic partner of raw materials supply by the European Union Battery Union (EBA250). It is in line with the policy needs of the European Union to vigorously develop green energy, and the market prospect is considerable.

3. Jinwang Bismuth Industry headquarters

Jinwang Bismuth Industry headquarters is located next to the main road of Chenzhou City, close to Chenzhou Avenue, Chenzhou passenger Station and the entrance and exit of Beijing-Hong Kong-Macao Expressway. The surrounding schools, hospitals, markets and other infrastructure facilities have been improved. At the same time, its industrial land can be changed into residential land, and the undeveloped land resources in the same area are scarce, which has great development potential and room for appreciation.

III. Investment instructions

1. In order to restructure the core assets of Xianxi General Factory, investors can participate in the restructuring of Jinwang Bismuth Industry through the combination of equity transfer, debt acquisition, overall business transfer and so on. Jinwang Bismuth Industry's historical debt has nothing to do with the restructured enterprises and investors, and the investment risk can be controlled.

2. In order to improve the efficiency of asset disposal, those who are interested in investing in Jinwang Hong Kong and Jinwang Europe can contact the manager, including the investment method (such as the first transfer of Jinwang's European equity or the direct transfer of Jinwang's Hong Kong equity) and investment consideration, it is convenient for the manager to determine the specific disposal plan.

IV. Consultation and contact

Those who are interested in investing in the above-mentioned assets can contact the manager for more information:

Contact: lawyer Zeng 18670309139, lawyer Li 19918354025;

Contact address: No. 1 Suoshi Road, Suoxian District, Chenzhou City, Hunan Province (Hunan Jinwang Bismuth Industry Co., Ltd.).

Manager of Hunan Jinwang Bismuth Industry Co., Ltd.

February 25, 2022