Huayou Cobalt plans to acquire 100% stake in Sheng Vanadium Technology to expand Lithium Iron Phosphate Business

In order to further improve the company's business layout in the field of lithium battery cathode materials and enhance the company's overall competitive strength, Huayou Cobalt (603799.SH) announced that it plans to acquire 100% equity in Sheng Vanadium Technology and expand its lithium iron phosphate business. After being examined and approved by the 24th meeting of the fifth session of the board of directors of the company, the company's holding subsidiary Bamo Technology and Huayou Holdings signed a "letter of intent for Equity acquisition" on November 5, 2021. Bamo Technology intends to purchase 100% of its stake in Sheng Vanadium Technology from Huayou Holdings by paying cash or issuing additional shares.

According to the relevant provisions of the Stock listing rules of the Shanghai Stock Exchange, Huayou Holdings is an affiliated legal person of the company, and this transaction constitutes a related party transaction. The final pricing of Sheng Vanadium Technology is based on the asset evaluation report issued by the asset appraisal institution confirming the evaluation of all the rights and interests of the shareholders of the target company as a reference, which is determined through consultation between the two parties.

Bamo Technology is a holding subsidiary of the company. As of the date of announcement, the company holds 38.6175% of Bamo Technology, while Huayou Holdings entrusts the voting rights of 26.4047% equity representatives of Bamo Technology to the company to exercise, and the company controls 65.0222% of the voting rights. Huayou Holdings is the controlling shareholder of the company. Huayou Holdings holds 16.42% of the company; Huayou Holdings and coordinated actor Chen Xuehua holds 23.35% of the company.