Zhitong Financial and Economic APP, Zhenhua New Materials (688707.SH) issued a notice that the company's wholly-owned subsidiary Yilong Xinliao purchased "Guizhou Zhenhua Yilong New material Co., Ltd. Automatic Line Circulation Line" through public bidding due to the need for the construction project of lithium-ion power battery ternary cathode material production line. After public evaluation, the winning unit of this public tender is panda equipment, and the final winning amount is 31.5 million yuan. According to the results of public bidding, the company signed a "procurement contract" with Panda equipment on the "Guizhou Zhenhua Yilong New material Co., Ltd. Automatic Line Circulation Line Purchasing Project".
Panda equipment is other enterprises controlled by China Electronic Information Industry Group Co., Ltd., the actual controller of the company, so this transaction constitutes a related party transaction. This related party transaction does not constitute a major asset reorganization as stipulated in the measures for the Administration of Major Asset reorganization of listed companies.