To expand cobalt & nickel business and broaden the sources of the raw materials and product line, GEM is planning a material assets reorganization based on the cash payment to purchase a 51% stake of Jiangsu KLK (Jiangsu Cobalt Nickel Metal Co., LTD). Jiangsu KLK focuses on R&D, production and sales of cobalt and new energy lithium battery anode material predecessor, its main productions are cobalt oxide and electrodeposited cobalt. GEM will receive 51% stake upon completion of the deal. This Mergers &Acquisitions will benefit both sides to achieve a multi-link and multi-dimensional on production, technology, downstream cobalt product, terminal application and the market, and give full play to the synergy between GEM and KLK, achieve a strategic integration on cobalt industry chain.