Greenway December 9th 丨 Hengxing Technology (002132.SZ) announced that the company, as Party B, and Ordos Junhan Development Investment Center (Limited Partnership) on December 9, 2019 ("Party A" or "Fund") Sign investment cooperation intention agreement.


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


After preliminary investigation and analysis, Party A has determined that Party B's silicone polymer project has investment value, and 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 mainly through equity investment, supplemented by other feasible investment methods such as shareholder loans or convertible bonds. 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 X, the chemical company and the project, and after full negotiation by the parties and the decision on fund investment.


3. Investment cycle


Party A's investment period for the project through Party A's sub-fund is estimated to be 5-7 years. Specifically, according to Party A's investment withdrawal expectations, project profitability and cash flow forecast, it is determined by the parties through full negotiation and fund investment decisions, and then determined by investment agreement .


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 carried out smoothly, which 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.