With an investment of no more than 500 million yuan, Dongwu Cement will develop rare earth and rare earth permanent magnet business.

A few days ago, Soochow Cement announced the entering into a framework agreement on the development of rare earth and rare earth permanent magnet business.

The announcement shows that the board of directors of the company (the "Board") is pleased to announce that on February 24, 2023 (after trading hours), the company has entered into a framework agreement with Ganzhou Chengzheng Rare Earth New Materials Co., Ltd. ( "Chengzheng Rare Earth") on the future development of rare earth and rare earth permanent magnet business ( "strategic cooperation"). The proposed total investment for the strategic cooperation will not exceed RMB500 million. Upon completion of the Investment, it is intended that the Company will own not less than 60% equity interest in Chengzheng Rare Earth. In addition, once the strategic company is established, the company or its affiliated enterprises intend to hold not less than 60% of its equity.

Relying on the rare earth resources and industrial advantages of Ganzhou, Jiangxi Province, the strategic cooperation will make full use of the technology and mature experience of the Target Group in the fields of rare earth exploration and mining, rare earth permanent magnet material production and rare earth permanent magnet motor, and cultivate a high-tech enterprise group with the advantages of rare earth resources and new energy industry as the core.

It is understood that Chengzheng Rare Earth is a joint-stock company established in China, mainly engaged in the processing of rare earth products, production, processing and sales of rare earth permanent magnet materials; sales of single rare earth oxide and chemical raw materials; sales of rare earth metals, luminescent materials, polishing powder, polishing solution and rare earth application products; R & D, production, processing, sales and service of rare earth permanent magnet motor. Chengzheng Rare Earth is a high-tech enterprise in Jiangxi Province, with a provincial academician workstation. To the best of the Directors' knowledge, information and belief, having made all reasonable enquiries, Chengzheng Rare Earth is an independent third party of the Company.