December 9, 丨 002132 Stellar Technology announced that the company, as Party B, signed an investment cooperation intention with Ordos (600295) Junhan Development Investment Center (Limited Partnership) ("Party A" or "Fund") on December 9, 2019 protocol.


Both parties agree to establish a long-term strategic cooperation relationship based on Party A's fund guidance and support functions and its fund manager's capital operation advantages, Party B's management advantages and resources in the silicone polymer industry, and in long-term strategic cooperation, benefit sharing, Develop together.


After preliminary investigation and analysis by Party A, Party B's preliminary judgment is that the silicone polymer project of Party B has investment value. It intends to invest in Party B's project in a reasonable manner through Party A's sub-fund.


1. Investment subject and investment method


Party A invests in equity investment in the project subsidiary of Party B, namely Stellar Chemical Company, through its subproject fund. The Sub-Fund makes cash investments in Stellar Chemical Company using equity investment as the main borrowing or convertible bonds and other feasible investment methods as a supplement. The investment funds are mainly used for the investment construction, production and operation of silicone polymer production lines.


The specific investment objects, investment methods and use of funds are subject to the investment agreement signed between the fund and Party B after the fund's investment decision.


2. Investment amount, shareholding ratio and investment valuation


Party A conducts an investment valuation of Stellar Chemical Company in accordance with the market-based valuation method, and determines the investment scale of the fund according to the project financing capital requirements.


The specific investment amount and investment valuation shall be determined in the form of investment agreement based on the detailed due diligence of Party A, Party B, Stellar Chemical Company and the project.


3. Investment cycle


Party A's investment period for the project through Party A's sub-fund is estimated to be 5-7 years, which is determined in the form of an investment agreement after full negotiation and fund investment decision by both parties based on Party A's investment exit expectations, project profit and cash flow forecast. .


The company signed an investment cooperation agreement with the Ordos Junhan Development Investment Center (Limited Partnership) this time to take advantage of the two sides to develop together and achieve win-win cooperation. This cooperation can be successfully carried out and will quickly promote Stellar Chemical's annual output of 12 The development of 10,000-ton high-performance organosilicon polymer project has brought positive influence to the company's future development.