* ST Jiangte: terminate the cooperation with the lithium salt production line of Ganfeng Lithium Industry

SMM10 March 29: * ST Jiangte announced that Jiangxi Special Motor Co., Ltd. and related subsidiaries have signed a "Cooperation termination Agreement" with Ganfeng Lithium Industry. The details are as follows:

On August 19, 2020, Jiangxi Special Motor Co., Ltd. (hereinafter referred to as "the company"), Jiangxi Jiangte Mining Development Co., Ltd. (wholly-owned subsidiary of the company, hereinafter referred to as "Jiangte Mining"), Yichun Silver Lithium New Energy Co., Ltd. (Jiangte Mining holding subsidiary, Hereinafter referred to as "Silver Lithium Company") and Jiangxi Ganfeng Lithium Industry Co., Ltd. (hereinafter referred to as "Ganfeng Lithium Industry") signed a "Cooperation Agreement on Lithium Salt production Line": the company intends to deliver the lithium salt production line owned by Silver Lithium Company to Ganfeng Lithium Industry for independent production, operation and management. And enjoy all operating income and bear all operating losses. During the cooperation period, Ganfeng Lithium Industry paid a total of 192 million yuan in cooperation management fees to the company, which lasted for 30 months from October 1, 2020 to March 31, 2023.

II. Description of the termination of this transaction

On October 28, 2020, the company and its related subsidiaries signed a "Cooperation termination Agreement" with Ganfeng Lithium Industry. After signing the cooperation agreement, Ganfeng Lithium Industry investigated the lithium salt production line of Silver Lithium Company and put forward a technical transformation plan. as the two sides failed to reach an agreement on the technical reform plan, the two sides jointly decided to abandon this cooperation and terminate the above-mentioned Cooperation Agreement on Lithium Salt production Line.

III. The impact of the termination of this transaction on the company and its follow-up arrangements

After the termination of this cooperation, the company will continue to be responsible for the production, operation and management of Silver Lithium Company, enjoy operating profits and bear operating losses, Ganfeng Lithium Industry does not need to pay cooperation management fees. There are no outstanding claims and debts, no disputes or disputes involving the cooperation agreement, and no significant asset expenditure between the two parties under the cooperation agreement. The termination of the cooperation agreement is based on friendly negotiation and true expression of intention between the two parties, and both parties undertake not to require the other party to bear any form of legal liability for the termination of the cooperation agreement.

Since the beginning of this year, the company has launched the technical optimization and transformation of the lithium salt production line of Silver Lithium Company, which is being carried out in an orderly manner. the completion of the transformation will reduce the production cost of lithium salt, improve product quality and enhance the market competitiveness of lithium salt products.