China Metallurgical: Auxiliary company plans to sell GM to Minmetals with equity, with a total cost of 177 million yuan

On August 1, 2022, China Zhongye (01618.HK) issued an announcement of the progress of the capital increase transaction of general Minmetals.

On July 30, 2022, the company's subsidiaries, Wuye Group, Seventeen Metallurgical Group, and Nineteen Metallurgical Group and General Global Medical Group Co., Ltd. General Global Hospital Investment Management (Tianjin) Co., Ltd. shall be established.

Based on this, Global Tianjin agreed to purchase and the Wuye Group, the Seventeen Metallurgical Group and the Nineteenth Metallurgical Group agreed to sell 2.34%, 1.30%, and 2.64%of the equity held by the general Minmetals, with a total cost of RMB 177 million.

After the sale transaction is completed, the Wuye Group, Seventeen Metallurgical Group and Nineteenth Metallurgical Group will no longer hold the equity of the universal minimum.

According to the company, the purpose of the group's transactions is to sell target assets and focus more on the main business.The company believes that the sale transaction provides the group with cash inflow, optimizes the group's asset structure, and further focuses on the development of the main business.Sale transactions will not affect the normal operation of the company's operating activities, and it will not affect the company's current and future financial conditions and business results.

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