New East plans to invest in First Element and establish a joint venture company
New East plans to sign an investment agreement with Suzhou First Element Nanotechnology Co., Ltd., intending to invest 18 million yuan in the form of convertible debt, which will convert into equity upon the achievement of certain conditions. At the same time, both parties will jointly invest to establish a joint venture company with a registered capital of 100 million yuan, in which New East will hold a 30% stake. This move aims to upgrade the existing fine chemical business and leverage technological advantages to develop high value-added new material products, aligning with the company's long-term planning
According to the announcement from Zhitong Finance APP, New East (603110.SH) plans to sign a "Special Investment Agreement" with Suzhou First Element Nanotechnology Co., Ltd. (hereinafter referred to as "First Element"). The company intends to make a special investment in First Element in the form of convertible debt, amounting to RMB 18 million. This investment will convert into equity of First Element upon the fulfillment of the agreed conversion conditions.
The company plans to sign a "Capital Contribution and Shareholder Agreement" with First Element, Mr. Zhou Qihua, and Mr. Chen Yun to jointly establish a joint venture company with a registered capital of RMB 100 million. Among them, the company's subscribed capital contribution will be RMB 30 million, holding a 30% stake; First Element's subscribed capital contribution will be RMB 40 million, holding a 40% stake; Mr. Zhou Qihua and Mr. Chen Yun will each subscribe RMB 15 million, holding a 15% stake each.
This investment to establish a joint venture company is part of the company's upgrade and transformation of its existing fine chemical business, leveraging the technological advantages accumulated over years in its existing business and its understanding of industries using chemical raw materials and products, to create a new carrier and platform for new material products with higher technological content and added value, aligning with the company's long-term planning and the interests of all shareholders
