With the approval of the South Korean government, Shanshan Holdings purchased the LCD polarizer business of LG Chem for RMB 770 million

Recently, Ningbo Shanshan Co., Ltd. (hereinafter referred to as "the Company" or "Shanshan Co., Ltd.") intends to acquire 70% of the equity of the holding company (the holding company is a new company established by LG Chem in China) by increasing its capital in the holding company, and indirectly purchase 70% of the interests of LG Chem's LCD polarizer business and related assets in mainland China, Taiwan, China and South Korea through the holding company (hereinafter referred to as "this major asset reorganization").

The announcement shows that the company has reviewed and approved the "Plan for this Major Asset Restructuring" and other proposals at the second meeting of the 10th Board of Directors held on June 9, 2020, the fourth meeting of the 10th Board of Directors held on September 14, 2020, and the second extraordinary general meeting of shareholders in 2020 held on September 30, 2020; and disclosed the "Announcement on the Progress of the Implementation of Major Asset Purchase by Shanshan Holdings" on November 30, 2020. According to the purchase plan released by Shanshan Holdings on June 9, the base purchase price of this major asset restructuring exceeds US$770 million.

It is worth noting that Shanshan Holdings said that the company received a notice from the Korea Fair Trade Commission on December 17, 2020 that this major asset reorganization did not violate the Korean "Monopoly Supervision and Fair Trade Act". So far, this transaction has obtained the approval of the Korea Fair Trade Commission on the concentration of operators. At present, the company is actively promoting the filing of the relevant concentration of operators in China involved in this transaction.

On October 27, Shanshan Holdings announced its performance for the first three quarters. Data showed that Shanshan Holdings' revenue in the first three quarters of 2020 was about 5.563 billion yuan, a year-on-year decrease of 14.61%; net profit was about 278 million yuan, a year-on-year decrease of 3.52%; basic earnings per share was 0.202 yuan, a year-on-year decrease of 21.09%.

Looking back, the company's semi-annual report mentioned that in the first half of this year, Shanshan's revenue was 3.21 billion yuan, a year-on-year decline of 27.71%; net profit was 100 million yuan, a year-on-year decline of 54.30%. Among them, the lithium battery material business contributed 32 million yuan in net profit, a year-on-year decline of 82.44%.