Longbai Group plans to spin off its holding subsidiary Guotai Shares and list it on the main board of the Shenzhen Stock Exchange

Today (November 21), Longbai Group (002601.SZ, stock price 17.82 yuan, market value 42.524 billion yuan) announced that it plans to spin off its controlling subsidiary Yunnan Guotai Metal Co., Ltd.(hereinafter referred to as Guotai Co., Ltd.) to be listed on the main board of the Shenzhen Stock Exchange. The number of shares to be issued will account for no less than 10% of the total share capital of Guotai Co., Ltd. After the spin-off is completed, Longbai Group's equity structure will not change, and it will still maintain its controlling stake in Guotai.

The announcement shows that the main business of Guotai is the production and sales of sponge titanium. Sponge titanium is an important raw material for the production of titanium materials and is used in aviation, aerospace, biomedicine, chemical metallurgy, ocean engineering, sports and leisure and other fields.
Longbai Group stated that the company (except Guotai Co., Ltd. and its holding subsidiaries) is mainly engaged in the production and sales of titanium dioxide, zirconium products, lithium battery positive and negative materials and other products. It belongs to two different branches of the titanium ore industry chain with sponge titanium products., product application areas and downstream customer types are significantly different. Therefore, the main businesses of the company (except Guotai Co., Ltd. and its holding subsidiaries) are different from Guotai Co., Ltd., and there is no horizontal competition that poses a significant adverse impact.
The announcement shows that Longbai Group directly and indirectly controls a total of 50.99% of the voting rights of Guotai. Longbai Group stated that after the completion of this spin-off, the financial status and profitability of Guotai Co., Ltd. will still be reflected in the company's consolidated statements.
Longbai Group believes that through this spin-off, the investment and financing capabilities of Guotai Co., Ltd. will be significantly improved, which will be conducive to the further development of Guotai Co., Ltd.'s business and the improvement of market competitiveness, which will in turn help improve the company's overall profitability in the future. level.
As of November 21, proposals related to the spin-off have been reviewed and approved by the Board of Directors and Board of Supervisors of Longbai Group. The announcement shows that as of the end of 2022, the total assets of Guotai Co., Ltd. were 5.561 billion yuan. From 2020 to 2022, Guotai's operating income was 110 million yuan, 903 million yuan, and 2.457 billion yuan respectively, and the net profit attributable to shareholders of the parent company was 6.1346 million yuan, 81.8597 million yuan, and 370 million yuan respectively.