New East New Materials (603110.SH) plans to invest in First Element and establish a joint venture company.

New East New Materials (603110.SH) announced that the company plans to sign a "Special Investment Agreement" with Suzhou First Element Nanotechnology Co., Ltd. (hereinafter referred to as "First Element"). The company plans to make a special investment in First Element in the form of convertible debt, amounting to RMB 18 million. This investment will be converted into equity in First Element when certain agreed upon conditions are met. The company also plans to sign a "Contribution and Shareholders Agreement" with First Element, Mr. Zhou Qihua, and Mr. Chen Yun, to jointly establish a joint venture company with a registered capital of RMB 100 million. The company's subscribed capital will be RMB 30 million, holding a 30% stake; First Element's subscribed capital will be RMB 40 million, holding a 40% stake; Mr. Zhou Qihua and Mr. Chen Yun's subscribed capital will be RMB 15 million each, holding a 15% stake. The establishment of the joint venture company is part of the company's upgrade and transformation of its existing fine chemical business. It leverages the company's technological advantages accumulated over the years and its understanding of the industry's use of chemical raw materials and products to create a new platform for high-tech and high-value new material products. This decision aligns with the company's long-term planning and the interests of all shareholders.