Gelonghui, May 21丨Aide New Energy (02623.HK) announced that on May 21, 2024, the seller Shandong Xingsheng Mining Co., Ltd. (an indirect wholly-owned subsidiary of the company) and the buyer Shandong Dane Mining Technology Co., Ltd. signed an asset transfer agreement. According to this, the seller conditionally agreed to sell and the buyer conditionally agreed to acquire the underlying assets at a cost of RMB 314 million.” “Target assets” refer to assets such as Yangzhuang iron ore mining rights (including beneficiation plants), Qinjiazhuang iron ore prospecting rights, production land (including leased and contracted land), houses, and production facilities (included in the Yangzhuang iron ore and beneficiation plant fixed asset catalogue).

Since the Yangzhuang Iron Mine was discontinued in October 2015, during this period, Shandong Xingsheng wanted to pay related expenses for the survival of the target asset maintenance enterprise. During this period, it was only revenue from trade and processing production lines, making the mine's operation difficult. As of the date of this announcement, the Yangzhuang Iron Mine held reserves of 37.1 million tons. The net proceeds from the sale are approximately RMB 289 million. The company plans to use the proceeds to invest in the group's major strategy - the Zhuge Shangyu Iron and Titanium Mine owned by Shandong Xingsheng to increase the scale of mining and production line construction at the Zhuge Shangyu Mine, and return shareholders with better economic benefits from iron titanium production.

The board of directors believes that the sale is in line with the Group's strategy to focus on the Shangyu iron and titanium mine in Zhuge. Furthermore, the Board believes that the sale provides a good opportunity for the company to (i) improve the Group's financial position; and (ii) promptly realize its investment in the underlying assets.