Shenghe Resources: Plans to transfer 51% equity in four rare earth smelting and separation subsidiaries to China Rare Earth Development.

Shenghe Resources announced that the company plans to enter into an equity cooperation with China Rare Earth Group Industrial Development Co., Ltd., transferring 51% equity in each of its controlled subsidiaries Leshan Shenghe, Quannan New Resources, Jiangyin Jiahua, and Zibo Jiahuafour companies in totalto China Rare Earth Development. The aggregate appraised preliminary valuation of the target companies ranges from RMB 3.25 billion to RMB 3.55 billion, corresponding to expected transaction consideration of RMB 1.6575 billion to RMB 1.8105 billion. After the transaction is completed, the four target companies will no longer be included in the consolidated financial statements, and the company's accounting for the target companies will change from the cost method to the equity method. This equity cooperation is limited to the rare earth smelting and separation business and does not involve the company's other businesses. China Rare Earth Group possesses resource and industrial advantages. Through this equity transfer, the company introduces a wholly-owned subsidiary of China Rare Earth Group to hold stakes in four rare earth smelting and separation enterprises, achieving equity cooperation between the two parties in the smelting and separation business.