Yunhai Metal subsidiary received 600 million yuan to increase capital to expand the company's original magnesium, magnesium alloy production and sales scale.

Yunhai Metal (002182) announced on the evening of August 17th that in order to expand the production and sales scale of the company's original magnesium and magnesium alloys, the company's wholly-owned subsidiaries Chaohu Yunhai magnesium Industry Co., Ltd. (hereinafter referred to as "Chaohu Yunhai"), Chongqing Boao magnesium Aluminum Metal Manufacturing Co., Ltd. ("Chongqing Boao") decided to introduce investors by way of capital increase. The capital increase party is the Goldstone Manufacturing Industry Transformation and upgrading New Materials Fund (hereinafter referred to as "Goldstone Fund"), with a total capital increase of 600 million yuan, including 100 million yuan for Chongqing Boao and 500 million yuan for Chaohu Yunhai.

The specific changes in the capital increase price and ownership structure are as follows: the total investment of Jinshi Fund in Yunhai of Chaohu Lake is 500 million yuan, of which 96.406661 million yuan is included in the registered capital of Yunhai of Chaohu Lake, and 403.593339 million yuan is included in the capital reserve of Yunhai of Chaohu Lake. After the completion of the capital increase, Yunhai Metal holds a 69.5% stake in Chaohu Yunhai, while Goldstone Fund holds a 30.5% stake in Chaohu Yunhai.

The total investment of Jinshi Fund in Chongqing Boao is 100 million yuan. Among them, the registered capital of Chongqing Boao is 57.166667 million yuan, and 4283.3333 yuan is included in the capital reserve of Chongqing Boao. After the completion of the capital increase, Yunhai Metal holds a 70.6% stake in Chongqing Boao, while Goldstone Fund holds a 29.4% stake in Chongqing Boao.

Yunhai Metal said that in order to meet the company's future capital needs, this transaction is conducive to optimizing the company's capital structure, reducing the company's financial expenses, and seizing the opportunity of the rapid development of the industry. with the help of social capital to promote the development of the industry and the company. This transaction does not involve the transfer of creditor's rights and debts. After the completion of the capital increase of the subsidiary, it will not lead to a change in the consolidated scope of the company's financial statements and will not have a significant impact on the company's performance.