Revitalizing Idle Aluminum Smelting Capacity: Jiaozuo Wanfang Transfers Index to Subsidiary for Licensing

【Revitalizing Idle Aluminum Smelting Capacity】Jiaozuo Wanfang (000612) has issued an announcement stating its intention to transfer the idle aluminum smelting capacity index of 70,000 tons to its newly established wholly-owned subsidiary, Ningxia Jiaowan New Materials Co., Ltd., and license it to its related party Ningxia Ningchuang New Materials Technology Co., Ltd. for use. The transaction is expected to generate annual licensing fee income not exceeding RMB 150 million, with the transaction price adjustable based on the monthly average quoted price of aluminum ingots. The initial licensing fee is set at RMB 500 per ton per year, with a minimum of RMB 300 per ton per year.

Ningchuang New Materials is a wholly-owned subsidiary of Hangzhou Jinjiang Group Co., Ltd., which is the controlling shareholder of Ningbo Zhongman Technology Management Co., Ltd. and Zhejiang Ansheng Holding Co., Ltd., both of which hold more than 5% of the company's shares. Therefore, this constitutes a related-party transaction. The purpose of this transaction is to revitalize the company's idle assets and enhance profitability, without having a significant adverse impact on its daily operations.