Inner Mongolia Dazhong Mining Co., Ltd. (SZSE:001203) signed an agreement to acquire Inner Mongolia Jinhui Rare Mineral Co., Ltd. from Zhongxing Group Co., Ltd., Li Lairong and Lin Pusheng for CNY 1.1 billion on April 11, 2023. Zhongxing Group will sell 88% stake, Lin Pusheng 10% stake and Lin Lairong 2% stake in Inner Mongolia Jinhui. As per agreement, first installment of payment within ten (10) working days from the date of approval of this transaction by Inner Mongolia Dazhong Mining’s shareholders' meeting, Inner Mongolia Dazhong Mining shall pay CNY 500 million.

The second installment of payment within ten (10) working days from the delivery date Inner Mongolia Dazhong Mining shall pay CNY 300 million. The third payment of CNY 100 million by Inner Mongolia Dazhong Mining shall pay before December 31, 2024. The fourth payment of CNY 100 million before December 31, 2025.

The fifth installment of payment within ten (10) working days after Inner Mongolia Dazhong Mining confirms the completion of Lin Lairong, Lin Pusheng and Zhongxing Group’s performance commitment and there is no unpaid compensation payable, Inner Mongolia Dazhong Mining will pay remaining cash transaction price of CNY 100 million. Inner Mongolia Jinhui Rare Mineral has reported total assets of CNY 724.80 million and net assets of CNY 364.19 million on January 31, 2023. The transaction is subject to approval from shareholders of Inner Mongolia Dazhong Mining.

The board of Inner Mongolia Dazhong Mining has approved the deal at 31st session of 5th directorate held on April 11, 2023.