Donghan New Materials Receives 19.11% Equity Interest in Dongyi Powder Metallurgy

On the evening of the 20th, Dongsheng New Material Group Co., Ltd. issued an announcement that the company transferred a 19.11% stake in its subsidiary Nanjing Dongrong Powder Metallurgy Co., Ltd.

On July 28, 2011, the fifth meeting of the Fourth Board of Directors of Dongsheng New Material Group Co., Ltd. reviewed the Proposal on the Proposed Assignment of a Partial Equity of Nanjing Dongrong Powder Metallurgy Co., Ltd., and decided to authorize the chairman of the company to take full responsibility for The company was transferred from Nanjing Dongsheng Powder Metallurgy Co., Ltd. to 19.11% of the equity held by Jiangsu Provincial Investment Management Co., Ltd.

On May 22, 2012, in the announcement of the public transfer of the national property rights of Jiangsu enterprises issued on the website of the Jiangsu Provincial Property Rights Exchange, the 19.11% stake of Nanjing Dongrong Powder Metallurgy Co., Ltd. held by Jiangsu Provincial Investment Management Co., Ltd. was first publicly listed. The transferee intends to acquire the transferee; this transfer has been approved by the Jiangsu Provincial Guoxin Asset Management Group Co., Ltd.'s “Approval for the Transfer of Equity of Nanjing Dongrong Powder Metallurgy Co., Ltd.” (Su Guoxinfa [2012] No. 86).

A few days ago, the company received the “Request Letter of Confirmation of Acquisition Promise” from the Jiangsu Provincial Equity Exchange and signed the Letter of Acquisition Commitment. On July 19, 2012, the company and Jiangsu Provincial Investment Management Co., Ltd. jointly signed the "State-owned Property Rights Transfer Contract."

The announcement stated that the reference price of this property transfer was determined based on the overall asset status, industry characteristics, current policies, economy, market environment and other factors of Nanjing Dongrong Powder Metallurgy Co., Ltd. According to the open transaction procedures of the Jiangsu Provincial Property Rights Exchange, the transaction price was determined to be RMB 1 million.

The announcement finally stated that the transfer of part of the shares of Nanjing Dongrong Powder Metallurgy Co., Ltd. of this subsidiary was in line with the company's development strategy. By increasing the shareholding of Nanjing Dongrong Powder Metallurgy Co., Ltd., the company will further strengthen the integration efforts of Nanjing Dongsheng Powder Metallurgy Co., Ltd. to achieve its early profitability, and can more effectively realize the company's strategic layout. At the same time, it will further strengthen the control of Nanjing Dongsheng Powder Metallurgy Co., Ltd. and effectively enhance its management and control. In addition, the transfer price of the transaction was paid by the company's self-raised funds, because all the transfer price was only *** 1 million yuan, which will not affect the company's financing and daily operations.