Gelonghui July 21 (08072.HK announced that on July 21, 2023, the company signed a memorandum of understanding with Linghua Holdings Limited ("partner", a limited company established in Hong Kong) relating to strategic cooperation with partners and the proposed acquisition of a certain percentage of the issued share capital of partners, both parties jointly facing the vast global new energy market. To establish an industrial chain integrated service platform with fluorite investment and development, downstream product production and sales in mainland China ("possible cooperation").
The Board is of the view that by entering into a memorandum of understanding, the two sides can make use of each other's competitive advantages, resources and expertise to establish a stable and mutually beneficial partnership. Once the possible cooperation is implemented, it will help the Group to enhance its business diversification and bring potential sales growth, which is in the interests of the company and shareholders as a whole.
The main industry of the partner is located in Chifeng City, Inner Mongolia. It is a mining group company integrating fluorite mine investment, mining, mineral processing, anhydrous hydrogen fluoride production and processing as well as downstream fine chemicals. The partner group has rich fluorite resources and strong mining and processing strength. Its downstream deep processing products are one of the main raw materials of new energy batteries, and the product sales market has a broad prospect. Has formed from mining, selection, to deep processing as one of the complete industrial chain, with a strong stamina for enterprise development.