Beijing Lier Magnesium investment has not yet reached an agreement

According to the market rumors of the company's involvement in the upstream magnesite resources, Beijing Lier said that the company is currently in preliminary contact with the Haicheng Magnesium Mine Refractory General Plant. The two parties have the willingness to cooperate and are conducting preliminary research and feasibility studies. They have not yet cooperated. In order to form an opinion, the company has not signed any related letter of intent and investment agreement. The decision on whether or not the investment and investment scale of this project needs to be approved by the board of directors and the general meeting of shareholders.

According to the company, the proportion of direct materials in the production cost of the company’s product units has remained at around 84% in recent years, and the price changes have a greater impact on the company’s production costs. In order to improve the profitability and quality of raw materials, the company has already clearly stated in the “Prospectus”: “In addition to strengthening the construction of three major refractory product manufacturing bases in Beijing Lier, Shanghai Lier and Luoyang, the refractory raw material is magnesia, Bauxite upstream industry development, and gradually build high-quality bauxite and magnesia two major raw material production base."