Shenghe Resources announced that the company plans to develop equity cooperation with China Rare Earth Group Industrial Development Co., Ltd. to transfer 51% of each of the holding subsidiary Leshan Shenghe and the four companies Quannan New Resources, Jiangyin Jiahua, and Zibo Jiahua to China Rare Development. The total estimated valuation of the target company is 3.25 billion yuan to 3.55 billion yuan, and the corresponding transaction price is estimated at 1,657.5 billion yuan to 1,810.5 billion yuan. After the transaction is completed, the four target companies will no longer be included in the scope of the consolidated statement, and the target companies will switch from cost method to equity method accounting. This equity cooperation is limited to the rare earth smelting and separation business, and does not involve the company's other business. China Rare Earth Group has resources and industrial advantages. Through an equity transfer, a wholly-owned subsidiary of China Rare Earth Group has been introduced to hold shares in four rare earth smelting and separation companies to achieve equity cooperation between the two parties in the smelting and separation business.

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