JL Mag Rare-Earth (06680) announced that the company plans to raise funds through H-shares to increase the capital of its wholly-owned subsidiary, JL Mag Rare-Earth (Ningbo) Investment Co., Ltd. (JL Mag Ningbo Investment), by no more than 0.15 billion RMB, and participate in the Chengdu Small and Medium-sized Enterprise Development Fund (Chengdu Fund) and Ganzhou Fatong Equity Investment Partnership Enterprise (Limited Partnership) (Ganzhou Fatong Fund) through JL Mag Ningbo Investment with the capital increase funds in this round of investment.
Relying on the resource advantages in the rare earth permanent magnet material industry chain and participating in industrial funds through cooperation with professional investment institutions, the company further improves its industrial chain layout, promotes the benign interaction between business operation and capital operation, and enhances its comprehensive competitiveness. At the same time, the company fully leverages the resource advantages, management experience, and sound risk control system of external professional investment institutions to help the company seize investment opportunities in a timely manner, reduce investment risks, and improve the quality of the company's external investment, creating more value for the company and its shareholders.
The funds for participating in the establishment of the Ganzhou Fatong Fund and acquiring shares of the Chengdu Fund in this investment come from the H-share funds raised by the company for potential acquisitions, which will not have adverse effects on the company's financial conditions and operating results, and will help promote the realization of the company's strategic objectives without damaging the interests of the company and its shareholders.