In 2018, the price of lithium carbonate fell sharply, and the lithium industry of Metro Energy (600175) layout was frustrated.

Metropolitan Energy announced in the evening of March 20 that Metropolitan Energy and the former shareholders of Riverford Lithium Industry had recently signed the Agreement between Metropolitan Energy Co., Ltd. and former shareholder Wang Mingyue of Riverford Lithium Industry Co., Ltd. and the management team to terminate the acquisition of shares of Shandong Riverford Lithium Industry Co., Ltd., Metropolitan Energy Co., Ltd., Liang and Guo Chengyun on the termination of the acquisition of Shandong Riverford Lithium Industry Co., Ltd The main content of the agreement is that considering the current market environment and other factors, the two sides intend to terminate the “Agreement on the Cash Acquisition of Shares of Shandong Ruifu Lithium Industry Co., Ltd. by Mei Dunyuan Co., Ltd.” The original management team of the target company repurchases the 56.18% of the above total shares. After the completion of this transaction, Metro Energy also holds 14.86% of the target company’s equity. Metropolitan said that the company has started to negotiate with other original shareholders of the standard company and will withdraw from Riverford Lithium completely after agreements with other parties have been reached.

On March 23, 2018, Mei Dunyuan passed the bill of “Agreement on Mei Dunyuan Company Limited’s Cash Acquisition of Shares in Shandong Ruifu Lithium Industry Co., Ltd.” It plans to purchase 98.51% of the total shares of Shandong Ruifu Lithium Industry Co., Ltd. for 2.9 billion yuan in cash. In 2018, 2019 and 2020, the betting performance of the two sides is not less than 420 million yuan, 450 million yuan and 480 million yuan, respectively.

Metro Source said Wang Mingyue and his management team had to pay compensation to listed companies for their performance in 2018. According to the preliminary audit of Listed Companies in 2018, the performance compensation is about 900 million yuan. According to the original cash acquisition agreement, Metro Energy still has 1 billion yuan of equity transfer to pay to Wang Mingyue and the management team in the next three years.

As for the specific reasons for the termination of the acquisition, Metropolitan explained that since March 2018, when the company signed the relevant equity acquisition agreement with the relevant counterparty, the market environment has changed greatly. In order to terminate the acquisition, the company took into account many factors, such as the target company and the current market environment, and made a decision after demonstration and research, and has already made a decision with the counterparty. Full communication and friendly consultation to reach an agreed result.

On the same day, Metropolitan announced receipt of the Shanghai Stock Exchange’s “Question Letter on the Termination of Metropolitan’s Acquisition of Riverford Lithium Industry”, and the Shanghai Stock Exchange asked about the rationality of the termination of the acquisition, the performance of Riverford Lithium Industry, and the high premium acquisition of the previous listed companies.

It is noteworthy that Metro Source covers real estate, oil, finance, new energy, commerce, hotels and so on. On the evening of July 25, 2018, Metro Source announced that the company intends to transfer the shares of 12 major subsidiaries of its real estate business sector to Deqing Wanli Real Estate Development Co., Ltd. in cash; and to transfer the shares of Metro Source (Singapore) Co., Ltd. The right is transferred to Deqing Caitong International Trade Co., Ltd. in cash. In the future, we will focus on the development of new energy business.

According to Metro Source’s official website, in the field of new energy, the company has initially completed the layout of the new energy automobile industry chain upstream from “lithium carbonate-lithium battery ternary cathode Material-Ternary power lithium battery”.

The company has acquired 60% of Haichuang Lithium Electricity, and currently has 12,000 tons of precursor capacity and 6,000 tons of cathode material capacity. Another 20,000 tons of ternary precursor project and 20,000 tons of ternary cathode materials are under construction. In March 2018, Haichuang Lithium Power Co., Ltd., Meidu, started construction of a new energy lithium battery material project with an annual output of 50,000 tons. After completion of the project, the annual production capacity of ternary precursor is 54,000 tons, that of ternary cathode material is 50,000 tons, and that of anhydrous sulfuric acid is 80,000 tons.

The company has acquired Delanen Power mainly engaged in lithium battery business. By the end of 2017, Delanen has three production bases, Zhangjiagang, Shanghai and Ningbo, with a total capacity of 2.5 Gwh.