Important Notice
- The company's controlling subsidiary, Yanhai Magnesium Industry, will conduct a capital increase. The company plans to subscribe for 55% of the newly increased registered capital. If the strategic investor's 40% shareholding cannot be fulfilled on time, the shortfall will be funded by Salt Lake Group, based on the actual contribution amount. The investment by the strategic investor that cannot be fulfilled on time will be subject to re-examination procedures as per the company's articles of association and listing rules. The new registered capital will be contributed in three phases, with the first phase contribution of 65.15 million yuan, and the remaining two phases to be fully paid by June 2012.
- The capital increase for Yanhai Magnesium Industry does not constitute a related party transaction.