On the evening of January 12, EVE Lithium Energy issued an announcement. The company received the notification of the bidding result and signed the "Property Rights Transaction Contract" with Qinghai Qaidam Development and Construction Investment Co., Ltd. (hereinafter referred to as "Chai Jiantou"), and successfully won the auction. Construction Investment held a 35.2857% stake in Xinghua Lithium Salt, and the final transaction price was 144 million yuan.
At the same time, EVE Lithium Energy signed the "Equity Transfer Agreement" with Zhai Yanhong, a shareholder of Xinghua Lithium Salt. With reference to the above auction transaction amount, Zhai Yanhong transferred 13.7143% of the equity of Xinghua Lithium Salt held by Zhai Yanhong for 56.02 million yuan. EVE Lithium Energy said that after the completion of the above transaction, the company will directly hold a 49% stake in Xinghua Lithium Salt.
The other 51% stake in Xinghua Lithium Salt is currently held by Dachaidan Dahua Chemical Co., Ltd. (hereinafter referred to as "Dahua Chemical"), which is associated with EVE Lithium Energy. According to Tianyancha, the main shareholders of Dahua Chemical include Tibet EVE Holdings Co., Ltd. and EVE Lithium Energy, holding 29% and 5% of its shares respectively. In terms of control rights, the actual controller of Xinghua Lithium Salt is a natural person, Zhao Penglong, who holds 59.73% of the company's shares, but he has issued a number of orders to restrict consumption.
The announcement shows that the business scope of Xinghua lithium salts is the production and sales of lithium salts and boron compounds, with a registered capital of 350 million yuan. Its operating income in 2020 was 17.87 million yuan, and its net profit was a loss of 57.56 million yuan. According to the website of the Qaidam Circular Economy Pilot Zone, the annual output of 10,000 tons of high-purity lithium chloride and 25,000 tons of boric acid projects implemented by Xinghua Lithium Salts, with a total investment of 647 million yuan, is listed as a key project in Qinghai Province. The first phase of the project was commissioned in December 2016, and the second phase was commissioned in May 2018. The smooth implementation of the project marks a major breakthrough in the field of lithium extraction technology from salt lakes, and has exemplary and milestone significance in the comprehensive development and utilization of salt lake resources in Dachaidan Industrial Park.
After the completion of this transaction, EVE Lithium Energy will directly hold 49% of the shares of Xinghua Lithium Salt, which is conducive to the company's further focus on the main business of lithium batteries, and has positive significance for the company to develop the upstream industrial chain and optimize the industrial layout, which is in line with the company's development strategy and overall interests.
