TU-TESL

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*St Mengshi (002684) announced that the company signed the strategic cooperation agreement with Beijing Zhiyun Asset Management Co., Ltd. (hereinafter referred to as Beijing Zhiyun) on November 11, 2019, and the two sides carried out cooperation around the layout of new energy industry chain and other strategic emerging industries. Beijing Zhiyun mainly focuses on M & A and investment in the upstream and downstream industrial chains of new energy, new environmental protection materials, clean energy and intelligent logistics. The cooperation includes: (1) Beijing Zhiyun assisted Mengshi technology in the restructuring of industrial integration and resource introduction, equity investment, debt investment, debt restructuring, M & A, industrial fund, strategic rescue investment, etc. (2) Beijing Zhiyun assists Mengshi technology and its related parties to realize the business layout of the new energy industry. Up to now, Mengshi technology has been well supported by three state-owned enterprises, namely, sankaisheng technology, Zhangzhou transportation group and Zhao'an Jindu assets, and contributed to the resumption of production and construction of new projects of Fujian Mengshi, a wholly-owned subsidiary of Mengshi technology. Holding the thighs of two state-owned enterprises, Sanmenxia investment group and Henan Gaochuang, the three parties plan to jointly build a new energy industry base in Sanmenxia demonstration area, and reach specific cooperation intention on Mengshi's investment of 2.5 billion yuan in Sanmenxia urban rural integration demonstration area and the construction of 5gwh high-end lithium production project. Unfortunately, behind the large-scale investment and construction of lithium battery projects, Mengshi technology's performance decline cannot be prevented. St Mengshi's revenue in the third quarter was 300 million yuan, down 21.97% year-on-year; net profit loss was 295 million yuan, up from the same period last year. In the first three quarters, the revenue was 840 million yuan, down 26.77% year on year; the net profit loss was 725 million yuan, up the same as the loss.