Long yuli (002601.SZ): To integrate its subsidiary Sponge Titanium Business

Long Yuli (002601.SZ) announced that the Company's 11th meeting of the 7th Board of Directors held on November 17, 2020 considered and adopted the "Proposal on Adjusting the Equity Structure of Subsidiary Subsidiaries".
Titanium industry is the basic industry of national economic development and industrial upgrading, with the development of the economy, the market demand for titanium will increase day by day, in order to improve the company's comprehensive competitiveness in the titanium industry, the company intends to integrate its subsidiary sponge titanium business, will be controlled subsidiary Lufeng Xinli Titanium Co., Ltd. ("Lufeng" Xinli") holds a 100% stake in Lufeng Guo Titanium Co., Ltd. ("Lufeng Guo Titanium") for 606.27 million yuan transferred to the company's controlling subsidiary Yunnan Guo Titanium Co., Ltd. ("Yunnan Guo Titanium"), Yunnan Guo titanium will become the company's titanium business platform.
This adjustment of the equity structure of its subsidiaries is to adapt to the development trend of the titanium industry, integrate the company's sponge titanium business, further achieve business focus, enhance the level of professional management, give full play to the effect of scale, reduce production costs, improve operational efficiency, optimize the allocation of resources.
the completion of the equity adjustment, there will be no change in the scope of the company's consolidated statements, will not affect the normal production and operation of the relevant subsidiaries in an orderly manner, there is no harm to the interests of the company and all shareholders.