Securities code: Sinomag Technology Co.Ltd(300835) securities abbreviation: Sinomag Technology Co.Ltd(300835) Announcement No.: 2021017
Sinomag Technology Co.Ltd(300835)
Announcement on investment and establishment of subsidiaries
The company and all directors and supervisors guarantee that the contents of the announcement are true, accurate and complete, and there are no false records, misleading statements or major omissions in the announcement.
1、 Overview of foreign investment
Sinomag Technology Co.Ltd(300835) (hereinafter referred to as “the company”) intends to use its own funds to invest in the establishment of Anhui Longci New Material Technology Co., Ltd. (tentative name, subject to the final registration), and authorizes the management of the company to be responsible for the matters related to the investment and establishment of subsidiaries.
This foreign investment does not constitute a connected transaction, nor does it constitute a major asset reorganization stipulated in the administrative measures for major asset reorganization of listed companies.
2、 Basic information of the proposed subsidiary
1. Name of proposed subsidiary: Anhui Longci New Material Technology Co., Ltd. (tentative name, subject to final registration)
2. Company type: limited liability company
3. Registered capital: 30 million yuan
4. Capital contribution: 100% of the company’s capital contribution
5. Registered address: Industrial Zone, Guohe Town, Lujiang County, Hefei City, Anhui Province
6. Legal representative: Zhang Yong
7. Business scope: general projects: research and development of new materials and technologies; Production of magnetic materials; Non ferrous alloy manufacturing; Sales of high-performance non-ferrous metals and alloy materials; Sales of new metal functional materials; Magnetic material sales. The above contents shall be subject to the final approval and registration of the administrative department for Industry and commerce.
3、 Purpose of foreign investment, impact on the company and existing risks
(I) investment purpose
Based on the company’s future development strategic planning, business expansion and optimization of industrial layout, provide new growth points for the company’s sustainable development. The investment and establishment of a wholly-owned subsidiary will help to improve the company’s product structure system and service functions, effectively supplement the company’s existing business and core capabilities in the R & D and production of permanent magnet and soft ferrite raw materials, and better match the needs of downstream customers.
(II) impact on the company
The establishment of subsidiaries is conducive to further expand the company’s business scope, enhance the company’s market competitiveness and sustainable profitability, and is of positive significance to the company’s future development. This investment is in line with the long-term development strategy of all shareholders and the company, will not have a significant impact on the company’s financial status and operating results, and will not damage the interests of listed companies and shareholders.
(III) existing risks
The establishment of subsidiaries by this investment still needs the approval of relevant examination and approval authorities such as the administrative department for Industry and commerce. Whether it can pass the relevant approval and the time of final approval are uncertain. In addition, after the establishment of the new company, it may face the influence of macroeconomic, industrial environment, market changes and other factors in the business process, and there are certain market risks, operation risks, management risks and so on. Subsequent companies will pay close attention to the establishment and progress of subsidiaries, actively prevent and respond to various risks that may be faced in the development of subsidiaries, and timely perform the obligation of information disclosure in strict accordance with the requirements of relevant laws, regulations and normative documents.
It is hereby announced
Sinomag Technology Co.Ltd(300835) board of directors March 15, 2022
