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Embracing Momentum for Mutual Success | Hailiang and Shenzhen Capital Group (SCGC) Forge a Strategic Partnership
2023-11-29

On November 28, the signing ceremony for equity investment and strategic cooperation between Shenzhen Capital Group's Manufacturing Industry Transformation and Upgrading New Materials Fund (referred to as "Shenzhen Capital New Materials Fund"), Hailiang Group, Zhejiang Hailiang Co., Ltd., and Gansu Hailiang New Energy Materials Co., Ltd. (hereinafter referred to as "Hailiang New Materials") took place in Lanzhou, Gansu.

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The ceremony was attended by Yang Jianzhong, Standing Committee Member of the Lanzhou Municipal Party Committee and Secretary of the Lanzhou New Area Party Working Committee, Zhang Aisheng, Deputy Secretary of the Lanzhou New Area Party Working Committee, Zuo Ding, Deputy Secretary of the Party Committee and President of Shenzhen Innovation Investment Group, Deng Liang, General Manager of Shenzhen Capital New Materials Fund, Cao Jianguo, Chairman of Hailiang Group and Chairman of Hailiang Co., Ltd., Ji Siyi, Director of the Board and Vice President of Hailiang Group, and Dr. Wang Shuguang, Vice President of Hailiang Group, Chairman of Hailiang New Materials.

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Cao Jianguo stated that since the commencement of the 150,000-ton high-performance copper foil material project at Hailiang in December 2021, the company has continuously broken through the industry's production capacity limits. In less than half a year, the first production line successfully completed trial production, achieving mass production in nine months. The company formally entered the supply chain system of leading customers in less than a year, creating a series of industry records and miracles. The signing of this strategic cooperation agreement marks an important step in the complementary strengths and strong alliance between Hailiang Group and Shenzhen Capital New Materials Fund. It will comprehensively open a new chapter in the joint development of enterprises and capital. Both parties will conduct more extensive and profound cooperation in areas such as the new energy industry chain, non-ferrous metals, and green transformation. This collaboration aims to accelerate the aggregation of upstream and downstream enterprises in the industrial chain, with the ultimate goal of establishing the world's largest new materials production base in Lanzhou New Area. This initiative will provide significant support for the strong development and growth of the new materials and new energy industries in Gansu Province.

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Zuo Ding, on behalf of Shenzhen Capital Group, expressed that Shenzhen Capital Group has been committed to the investment philosophy of "strategic guidance, innovation-driven, and value investment" over more than two decades of exploration. The strategic alignment in development direction between Shenzhen Capital and Hailiang is conducive to jointly advancing the implementation of the national "dual-carbon strategy" and "Digital China" strategy, leading the industry in high-quality development. It also embodies the important realization of the new development concept of "innovation, coordination, greenness, openness, and sharing." Shenzhen Capital Group sees this cooperation as an opportunity to increase exploration and support for high-quality enterprises in Gansu Province. They hope that, with the support of local governments at all levels, the National Manufacturing Industry Transformation and Upgrading Fund, Hailiang Group, and our investment institutions, they can accelerate the deep integration of resources such as industrial chains, innovation chains, and talent chains, using capital as a link. Shenzhen Capital Group is willing to join hands with partners to create a win-win situation, contributing to the high-quality development of China's new materials industry.

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Zhang Aisheng, on behalf of the Lanzhou New Area Party Working Committee, stated that Lanzhou New Area possesses natural locational advantages and unlimited development potential. Through this four-party cooperation, comprehensive and in-depth cooperation will be carried out to provide strong development momentum and support for the high-quality leading development of Hailiang New Energy Materials. Lanzhou New Area will adhere to the concept of "What enterprises need and hope for is what we think and do." Through cooperation with enterprises, they will jointly embark on a path of high-quality development from "point to scene," creating a magnificent chapter of mutually beneficial development between government and enterprises in the new era. This will contribute to improving people's health and well-being, contributing to the construction of a green China, and creating a new chapter for the New Area.

The signing of the four-party equity investment and strategic cooperation agreement involves an increased capital amount of 3.3 billion yuan. Shenzhen Capital New Materials Fund and Industrial and Financial Investment(Beijing) Emerging Industry Equity Inveestment Fund Patnership(Limited Partnership)p respectively contribute 1.5 billion yuan and 300 million yuan to Hailiang New Materials. Hailiang Group Limited contributes 400 million yuan to Hailiang New Materials, and Hailiang Co., Ltd. contributes 1.1 billion yuan to Hailiang New Materials.

The ceremony was attended by Luo Yaozong, Member of the Lanzhou New Area Party Working Committee and Deputy Director of the Management Committee, Zhang Cuiqing, Deputy Director of the Lanzhou New Area Development and Reform Bureau, Wang Junfeng, Deputy Director of the Lanzhou New Area Economic Cooperation Bureau, Shuang Mingmei, Member of the Party Committee of Zhongchuan Park and Deputy Director of the Management Committee, Zhao Dongping, Executive General Manager of Shenzhen Capital New Materials Fund, Deng Ye, Deputy General Manager and Chief Engineer of Hailiang New Materials, Dr. Luo Chong, Deputy General Manager and Vice President of the Research Institute, and Yuan Zhibin, Assistant General Manager and Head of Manufacturing Division.