Businesses . . . Longyu Li intends to lease the production line of chlorpyrifos and zirconium dioxide to the Oriental Palladium industry

LongyuLi (002601.SZ) announced that the Company currently holds 9721.0818 million shares of RMB common stock of Guangdong Oriental Yiye Technology Co., Ltd("Oriental Yiye"), accounting for 15.66% of its total share capital, making it the largest shareholder of Oriental Yiyecompany is mainly engaged in titanium dioxide, tantalum products and sulfuric acid and other products production and sales, of which the tantalum products business and the Oriental tantalum industry constitute a certain degree of industry competitionIn accordance with the relevant provisions of the Measures for the Administration of Acquisitions of Listed Companies and the Guidelines for the Standardized Operation of SMe Board Listed Companies of the Shenzhen Stock Exchange, the Company promised in the Supplementary Notice on <> issued by The Eastern Industry on November 22, 2019 that the company would resolve the issue of inter-industry competition within 36 months after the completion of the acquisition of 15.66% of the shares of Oriental YanyeIn order to fulfill its commitments, the Company's 6th Board of Directors held on December 27, 2019 at its 25th meeting, the adoption of the "On the custody of the Oriental Tantalum-related assets and related transactions", the company has signed a "custody agreement" with the Oriental Palladium industry, the company's existing chlorine oxide and dioxide production line, the company's share of coking City Wiener Technology Co., Ltd("Wiener Technology") 21.30% of the equity custody to the Oriental Industryto focus on the main industry, to further solve the problem of competition in the industry, the company intends to reduce the production line of chlorpyrifos and zirconium dioxide production line-related plant, equipment and facilities to the Oriental Tantalum industry, the lease period is 5 years, the annual rent is 5 million yuan (excluding tax)Tan Ruwen is the son of tan Ruiqing, a shareholder with more than 5% of the company's holdings, and Xu Gang and Tan Ruwen, the chairman of the company, are directors of the 7th Board of Directors of Oriental Yiye, and according to the Shenzhen Stock Exchange Stock Listing Rules, the transaction constitutes an associated transaction and does not need to be submitted to the shareholders' meeting for considerationthe proposed lease of assets for the company's existing production line of chlorpyrifos and zirconium dioxide related to plant, equipment and facilitiesAt present, the company has two production lines of radon chloride and zirconium dioxide, of which the design of 16,000 tons of chlorpyrifos, the design of radon dioxide annual output of 1600 tonsThe existing production line of palladium chloride and zirconium dioxide started in September 2010 and began operation in December 2011to the Oriental Palladium to rent the production line of chlorpyrifos and zirconium dioxide, the company is no longer engaged in tantalum products-related business, is conducive to solving the problem of competition with the Oriental industry, while at the same time conducive to the company and the Oriental tantalum industry, further achieve business focus, enhance the level of professional management, improve product competitiveness and profitability