Gelonghui, November 21丨Northern Rare Earth (600111.SH) announced that in order to help build a world-class rare earth enterprise, in accordance with the company's controlling shareholder Baogang (Group) Company's energy system integration strategy and general requirements, the company plans to use physical assets and monetary capital to establish a joint venture with Baogang (Group) Company and Baogang Co., Ltd., a holding subsidiary of Baogang (Group) Company, to establish Inner Mongolia Baogangxin Energy Co., Ltd. (tentative name, ultimately based on industrial and commercial approval registration, hereinafter referred to as the new company) to promote the implementation of energy system integration.
The real assets the company plans to invest in are the 66 substation assets (assessed value of 10.9701 million yuan) of the company's smelting branch and the 110 kV substation assets in the company's green smelting upgrade project constructed by Huamei Company, a wholly-owned subsidiary of the company (this asset is currently under construction, with a provisional valuation of 130.2771 million yuan according to the project estimate). At the same time, the company plans to invest 21.4617 million yuan in monetary capital. The total physical assets and monetary capital investment mentioned above are 162.7089 million yuan. The registered capital of the new company is 3254.1779 million yuan, of which Baogang (Group) Company holds 48.98% and is the controlling shareholder of the new company. Baogang shares hold 46.02% of shares, and the company's shareholding ratio is 5%.
