Zhitong Finance App News, Venture Group Holdings (02221) issued an announcement regarding the joint venture agreement between Shenzhen Huamingsheng (the company owns 51% subsidiary) and Shaanxi Hantang Senyuan Industrial Development Group Co., Ltd. (Hantang Senyuan) on July 11, 2023. The parties agreed to establish a joint venture, namely Xi'an Hantang Mingsheng Technology Co., Ltd. (Hantang Mingsheng).

According to the joint venture agreement, after establishment, Hantang Mingsheng's registered capital should be 350 million yuan (RMB, same below), with Shenzhen Huamingsheng and Hantang Senyuan holding 30% and 70% respectively. Han Tang Sen must inject 245 million yuan into Han Tang Mingsheng in cash within 30 days after signing the joint venture agreement, while Shenzhen Huamingsheng must inject 105 million yuan into Han Tang Mingsheng, and it is at its sole discretion to pay in cash or through the transfer of patented technology to Han Tang Mingsheng (see definition below). If Shenzhen Huamingsheng invests capital in cash, Han Tang Mingsheng will negotiate with Shenzhen Huamingsheng on its possible acquisition of patented technology from Shenzhen Huamingsheng at an estimated cost of 105 million yuan, and if Shenzhen Huamingsheng decides to inject capital into Han Tang Mingsheng through patented technology, the company will publish a separate announcement.

On the date of this announcement, Han Tang Senyuan has fully paid its capital injection into Han Tang Mingsheng, while Shenzhen Huamingsheng has yet to pay its capital injection into Han Tang Mingsheng.

After consideration, Shenzhen Huamingsheng decided to inject its capital into Han and Tang Mingsheng through patented technology.

According to reports, patented technology includes 20 patents, including but not limited to patents, know-how, and production rights for modified graphite anode materials and related anode materials. Of these, 16 patents were transferred by Shanghai Bacchus Superconducting New Materials Co., Ltd. (Shanghai Bakus, 49% shareholder of Shenzhen Huamingsheng) to Shenzhen Huamingsheng in accordance with a supplementary agreement dated November 30, 2023. Details of the agreement were announced by the company on the same day. The remaining 4 patents have been developed and registered by Shenzhen Huamingsheng since its establishment.

According to the announcement, one of the main purposes of the joint venture agreement is to enable Han and Tang Mingsheng to master patented technology, which is particularly important to its main business. Therefore, injecting patented technology is on the one hand in line with this main purpose, and on the other hand, it accelerates the fulfillment of responsibilities under the joint venture agreement between Han Tang Senyuan and Shenzhen Huamingsheng. Furthermore, if necessary, Han Tang Senyuan will be responsible for providing additional capital to Han Tang Mingsheng in the form of shareholder loans, with an annual interest rate of not more than 6%. As a result, the move enabled the Group to obtain greater production capacity without further capital participation. Furthermore, upon confirmation of the company's audited financial statements for the year ended March 31, 2024, the relevant injection of patented technology will generate revenue of approximately 68.8 million yuan.