Guofeng Plastic Industry intends to control Ningxia Jiajing to cut into the sapphire industry

Guofeng Plastics intends to join the sapphire field through acquisition. The company announced on the evening of September 4, September 3, the company signed a "Framework Agreement on Equity Transfer and Capital Increase and Share Expansion" with Jiajing International, Yinchuan Gaoxin, Hu Mingli and Ningxia Jiajing, stipulating that the company intends to be held by Yinchuan Gaoxin. Ningxia Jiajing 29.59% equity, while the company and Hu Mingli jointly increased capital of 63 million yuan to Ningxia Jiajing, of which the company increased capital by 54 million yuan. After the equity transfer and capital increase and share expansion, Ningxia Jiajing will become the holding subsidiary of the company.

According to reports, Ningxia Jiajing's main business is the growth and slicing of sapphire single crystal. Sapphire is a common name for the morphology of alumina single crystals. It is an important basic material for modern industry. The application fields of sapphire mainly involve LED substrate materials, consumer electronic intelligent terminals and military and weapon applications.

As the Ningxia Jiajing sapphire crystal project has not been officially put into production, no sales revenue has been formed yet. Ningxia Jiajing's annual production of 60 tons of sapphire crystal project has entered the trial operation stage, and the first batch of samples have been sent to customers for trial use.

The actual controller of Ningxia Jiajing is a listed company in Taiwan. It is mainly engaged in the manufacture and sales of sapphire substrates and has a certain reputation in the industry.

Guofeng Plastics Co., Ltd. said that the investment in the new materials industry is in line with the strategic goals of the company's industrial transformation and upgrading, making the company's business types more abundant. While the company is moving towards functional membrane materials, it will actively introduce new industries, which will form new profit growth points and realize the development of the company's two-wheel drive.

Since August, Guofeng Plastics' share price has increased by 40%. On September 2, the company's share price rose 8.12%, hitting a new high of 6.41 yuan in a year. On the same day, the company received a letter of concern from the Shenzhen Stock Exchange requesting verification of the relevant matters. The company threw out the equity transfer framework agreement today. Guofeng Plastics said that after self-examination, the company did not violate the fair disclosure of information.

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