Chengdu Wintrue Holding (002539.SZ) subsidiary plans to form a joint venture with Zangge Mining and invest in a potash project in the Republic of the Congo.

Chengdu Wintrue Holding (002539.SZ) announced that its wholly-owned subsidiary, Yingcheng Chemical Company, plans to jointly invest with Zangge International, a wholly-owned subsidiary of Zangge Mining, to establish United Resources Company in Singapore, with a registered capital of US$1. Among them, Yingcheng Chemical Company holds 25% of the shares, and Zangge International holds 75%. After the establishment of United Resources Company, it plans to acquire a 92% equity interest in Kanga Potash (referred to as "KP Company") for US$171 million (equivalent to approximately RMB 1.157 billion, excluding transaction taxes and fees). Yingcheng Chemical Company's total investment corresponding to its 25% shareholding ratio is US$42.7616 million (equivalent to approximately RMB 289 million). After the transaction is completed, Yingcheng Chemical Company will hold 25% equity in United Resources Company, and United Resources Company will hold 92% equity in KP Company. KP Company's core assets are the Kanga potash mining right and the Loango potash exploration right located within the Republic of the Congo (referred to as "Congo (Brazzaville)"). The company's participation in the investment in the Congo (Brazzaville) potash project is an important strategic layout for the company to base itself on its compound fertilizer main business and extend upward into the upstream potash raw material field. By taking an equity stake in KP Company, the company will increase its potash resource reserves, fill the gap in its upstream potash resource layout, strengthen its ability to secure potash raw materials, and provide resource support for the company's long-term development in compound fertilizers.