[Shenghe Resources: Plans to transfer 51% equity of four rare earth smelting and separation subsidiaries to China Rare Earth Development] On October 18, Shenghe Resources (600392.SH) announced that the company plans to carry out equity cooperation with China Rare Earth Group Industrial Development Co., Ltd. and transfer 51% equity of each of the four holding subsidiaries Leshan Shenghe (after divesting the non-rare earth smelting and separation business) and Quannan New Resources, Jiangyin Jiahua, and Zibo Jiahua to China Rare Development. The estimated estimated value of the target company totals 3.25 billion yuan to 3.55 billion yuan, and the corresponding transaction price is expected to be 1.6575 billion yuan to 1.8105 billion yuan. After the transaction is completed, the four target companies will no longer be included in the consolidated statements, and the company will switch from the cost method to the equity method for accounting of the target companies. This equity cooperation is limited to the rare earth smelting and separation business and does not involve the company’s other businesses. China Rare Earth Group has resources and industrial advantages. This time, through equity transfer, China Rare Earth Group’s wholly-owned subsidiary was introduced to hold shares in four rare earth smelting and separation companies, realizing equity cooperation between the two parties in the smelting and separation business.