Securities code: 002601 securities abbreviation: Lb Group Co.Ltd(002601) Announcement No.: 2022-007 Lb Group Co.Ltd(002601)
Announcement on investment in the construction of an innovative project for the upgrading and transformation of 10000 tons of sponge titanium production line
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Lb Group Co.Ltd(002601) (hereinafter referred to as “the company”), at the 31st meeting of the 7th board of directors of the company held on January 17, 2022, the proposal on investment and construction of innovation project for upgrading and transformation of 10000 ton sponge titanium production line was considered and adopted. In order to seize the development opportunity of titanium industry and further improve the layout of titanium industry, Yunnan Guoti Metal Co., Ltd. (hereinafter referred to as “Yunnan Guoti”), the holding subsidiary of the company, plans to invest in the upgrading and innovation project of 10kt / a sponge titanium production line.
According to the Listing Rules of Shenzhen Stock Exchange and the articles of association, the above foreign investment matters shall be submitted to the first extraordinary general meeting of shareholders of the company in 2022 for deliberation.
This foreign investment does not constitute a connected transaction, nor does it constitute a major asset reorganization as stipulated in the measures for the administration of major asset reorganization of listed companies.
1、 Basic information of the project
1. Project Name: 10kt / a sponge titanium production line upgrading and innovation project
2. Construction site: salon, Qinfeng Town, Lufeng County, Chuxiong Yi Autonomous Prefecture
3. Construction scale and content of the project: according to the current production status and development plan of Yunnan titanium 10000 ton sponge titanium production line, the two chlorination furnace production lines will be operated at the same time, optimized and transformed, and some supporting production auxiliary systems will be expanded. Finally, the production capacity of refined titanium tetrachloride will reach 200000 t / A, of which 120000 tons of refined titanium tetrachloride will be sold as products, 80000 tons of refined titanium tetrachloride is sent to the sponge titanium production workshop as an intermediate product to produce 20000 tons of sponge titanium.
4. Total investment: 44.15347 million yuan
5. Source of funds: self owned and self raised funds
6. Construction period: 8 months
7. Project filing: the project has been filed in Lufeng development and Reform Bureau (filing No. [project code]: 2102-532331-04-02-284055)
2、 Main body of project implementation
1. Company name: Yunnan Guoti Metal Co., Ltd
2. Unified social credit Code: 91532300ma6p5g837x
3. Registered capital: 150 million yuan
4. Legal representative: Chen Jianli
5. Address: Sharon village, Qinfeng Town, Lufeng City, Chuxiong Yi Autonomous Prefecture, Yunnan Province
6. Business scope: ilmenite mining and beneficiation, smelting of high titanium slag and production and operation of by-products; Production and sales of sponge titanium and its by-products (metal magnesium and magnesium chloride); Production and sales of titanium alloy and its by-products; Production, sales and entrusted processing of stainless steel sector, stainless steel composite sector coil and nickel base alloy products; R & D, manufacturing, sales and entrusted processing of nickel, zirconium, hafnium rare metals, alloy materials and their metal products; Design, manufacture, sales and technical maintenance of titanium equipment; Manufacturing, installation and maintenance of smelting equipment; Self operated and acting as an agent for the import and export of various commodities and technologies; Operating lease of machinery and equipment; Other professional consultation and investigation. (for projects subject to approval according to law, business activities can be carried out only after approval by relevant departments)
3、 Necessity and feasibility of project construction
Titanium has the outstanding characteristics of low density, high strength, low thermal conductivity, good high and low temperature resistance, strong corrosion resistance and good biocompatibility. It is widely used in aviation, aerospace, ships, weapons, biomedicine, chemical metallurgy, marine engineering, sports and leisure and other fields. It is known as “space metal” and “marine metal” “Modern metals” and “strategic metals”. Titanium industry is a basic industry for national economic development and industrial upgrading. It is of strategic significance to a country’s national defense, economic and scientific and technological development. It is an industry supported and prioritized by the state. China has successively issued a series of policies to support the development of titanium industry.
The company and its subsidiaries have mature core technologies such as sponge titanium, high titanium slag and large-scale “fluidized bed furnace” chlorination, forming a complete titanium industry chain, which can provide strong support for the implementation of the project.
4、 Purpose of the project investment and its impact on the company
The implementation of the project will enrich the company’s titanium product series, rely on the company’s existing industrial chain, further give play to the company’s large-scale advantages, improve the company’s position in the titanium industry, and promote the optimization and upgrading of the company’s titanium concentrate titanium chloride slag titanium dioxide by chlorination process titanium sponge titanium alloy industry chain, Achieve the development goal of “making refined titanium products and titanium derivatives”, improve the profitability and core competitiveness of the company, and promote the sustainable development of the enterprise.
5、 Investment risk of the project
The project investment may face major changes in industrial policies, failure to meet market expectations, internal control and other risk factors in the actual operation process. The company will establish a sound internal control process and effective supervision mechanism, optimize the overall resource allocation of the company, clarify the business strategy and market positioning, and prevent and respond to various risks.
6、 Documents for future reference
1. Resolutions of the 31st meeting of the 7th board of directors of the company;
2. Resolution of the 31st meeting of the 7th board of supervisors of the company.
It is hereby announced.
Lb Group Co.Ltd(002601) board of directors
January 17, 2022
