Securities code: 002340

Securities abbreviation: GEM

Announcement number: 2020-058

GEM Co., Ltd.
Announcement on the signing of capital cooperation
between a wholly-owned subsidiary company and Wuxi
Airport Economic and Technological Development Zone
in Wuxi Power Battery Low-Carbon Cycle Project
The company and all members of the board of directors guarantee that the information
disclosed is true, accurate and complete, and that there are no false records,
misleading statements or major omissions.
I. Overview
In view of the fact that the Yangtze River Delta is rapidly becoming theconsumption center and scrap center of new energy vehicles in China, in order topromote the application of the new energy full life cycle value chain model of GEMCo., Ltd. (hereinafter referred to as the "Company") in the Yangtze River Delta, thecompany will greatly improve the In July 2020, the company's wholly-owned
subsidiary GEM (Wuxi) Energy Materials Co., Ltd. (hereinafter referred to as "GEM(Wuxi)") and Wuxi Airport Economic Development Zone Management Committee
have a core position in the field of power battery and new energy vehicle green
recycling. (hereinafter referred to as "Wuxi Airport Economic and Technological
Development Zone Management Committee") reached an agreement and signed on
the investment in high-value new energy recycling projects (annual recycling of
100,000 sets of power batteries and annual recycling and disposal of 100,000 newenergy vehicles) The "New Energy High Value Recycling Project Investment
Agreement".The two parties agreed to work together to build an industrial
demonstration base and engineering technology research center for green recycling ofpower batteries and new energy vehicles in Jiangsu Province in Wuxi Airport
Economic Development Zone through the world's advanced technology and green
development model, and become the world's most advanced power battery. and theNew Energy Vehicle Recycling and Green Disposal Center, making new contributions

to the development of circular economy in Wuxi City and Jiangsu Province. For
details, please refer to the "About the Wholly-owned Subsidiary Company and theWuxi Airport Economic and Technological Development Zone Management
Committee Signing an Annual Recycling and Processing of 100,000 Sets of Power
Batteries" published by the company on http://www.cninfo.com.cn Announcement on
the Investment Agreement with the 100,000 New Energy Vehicle Project(Announcement No.: 2020-065).
2. The progress of this time
In order to promote the strategy of "carbon peaking and carbon neutrality" and toimplement Announcement No. 2020-065, the company plans to build the company's
Wuxi New Energy Circular Economy Low-Carbon Demonstration Park with "power
battery recycling and new energy vehicle recycling" as the mainstay. Recycling andprocessing 100,000 new energy vehicles and the construction of projects such as theannual recycling and remanufacturing of 100,000 tons of power batteries to reducecarbon dioxide emissions by 1 million tons Cascade utilization of parts andcomponents — remanufacturing of new energy materials ” , the new energy full life
cycle low-carbon industrial model, promotes new energy vehicles from “ green togreen”.
On June 6, 2021, in order to promote the implementation of the above projects,
with the strong support of Wuxi Airport Economic and Technological Development
Zone, GEM (Wuxi) Energy Materials Co., Ltd., a subsidiary of the company, held agrand opening ceremony for the construction of the park in Wuxi. GEM (Wuxi) andWuxi Airport Economic Development Zone and Wuxi New District Science andTechnology Finance Venture Capital Group Co., Ltd. based on the principle ofreciprocity, signed a capital cooperation contract for GEM Power BatteryLow-Carbon Cycle Project, Wuxi Airport Economic Development Zone, Wuxi New
District Technology Finance Venture Capital Investment Group Co., Ltd. will
participate in the capital investment of the company's Wuxi power battery recycling
project, and the specific investment amount and equity ratio will be separately agreed.
All parties will use their respective advantages and strengths to jointly build thecompany's Wuxi New Energy Circular Economy Low-Carbon Demonstration Park,and build a "power battery recycling - new energy vehicle recycling - power battery

cascade utilization - auto parts cascade utilization - new energy material
remanufacturing. "The new energy full life cycle low-carbon industrial model, topromote new energy vehicles from "green to green".
3. Basic information of partners
1. Wuxi Airport Economic Development Zone is located in the east of Wuxi,
across the river from Suzhou and adjacent to Wuxi Airport. The park has convenienttransportation. In recent years, efforts have been made to develop emerging industries
and promote industrial transformation and upgrading. Industrial clusters such asaviation industry, modern logistics industry, life science and technology industry,high-end manufacturing industry, stainless steel and non-ferrous metal industry havebeen formed, and a large number of advantageous enterprises have been introduced
into the park. .
Wuxi Airport Economic and Technological Development Zone has a good
reputation and performance capability, and has no associated relationship with thecompany and its controlling shareholders, actual controllers, directors, supervisors,and senior managers.
2. Wuxi New District Technology Finance Venture Capital Group Co., Ltd.
Company Name: Wuxi New District Technology Finance Venture Capital GroupCo., Ltd.
Legal representative: Jin Lei
Date of establishment: January 31, 2008
Registered capital: RMB 1,367,141,000
Company address: Floor A3, Building 530, University Science and Technology
Park, No. 18 Qingyuan Road, Xinwu District, Wuxi City
Business scope: venture capital; acting as an agent for other venture capitalcompanies and other institutions or individuals in venture capital business; venturecapital consulting; asset management; venture management services; participation inthe establishment of venture capital companies and venture capital management
consulting agencies. (For projects subject to approval according to law, businessactivities can only be carried out after approval by relevant departments).
Wuxi New District Science and Technology Finance Venture Capital Group Co.,
Ltd. has a good reputation and performance capability, and has no relationship withthe company and its controlling shareholders, actual controllers, directors, supervisors,and senior managers.

4. Impact on the company
Wuxi is an important manufacturing center and new energy market center in theYangtze River Delta. The 150-kilometer range with Wuxi as the center covers theimportant developed cities of Suzhou, Changzhou and Shanghai. More than 35%, it
has broad prospects for power battery recycling and new energy vehicle recycling.
This time, it signed a capital cooperation agreement with Wuxi Airport Economic
Development Zone and Wuxi New District Science and Technology Finance Venture
Capital Group Co., Ltd. for the GEM power battery low-carbon recycling project,which is to recycle 100,000 new energy vehicles and recycle 100,000 tons per year.
The implementation of the power battery project is an important measure to promotethe "carbon peak and carbon neutrality" strategy, which is conducive to further
promoting the company's geographical location in the new energy market based on
the advantages of Wuxi's surrounding area to expand the scale of new energy vehicle
recycling and power battery manufacturing. To build a globally competitive power
battery and new energy vehicle green recycling base in the Yangtze River Delta, tofully meet the huge demand for power battery and new energy vehicle green recyclingin the Yangtze River Delta when new energy vehicles are scrapped.
After the signing of this capital cooperation, the company will quickly promote
Wuxi to build an annual recycling base of 100,000 sets of power batteries and anannual recycling and processing base of 100,000 new energy vehicles, and rely on thecompany's chemical base in Taixing to effectively build a "power battery" in theYangtze River Delta region. Recycling - new energy vehicle recycling - power battery
cascade utilization - auto parts cascade utilization - new energy material
remanufacturing" new energy full life cycle low-carbon industry model, further
consolidate GEM's global "battery recycling - precursor material remanufacturing material remanufacturing" "Recycling industry chain, complete the company's power
battery recycling and new energy vehicle recycling industry layout in the Pearl River
Delta, Central China, Central Plains, Beijing-Tianjin-Hebei, Yangtze River Delta andother major regions, forming the company's new energy vehicles and power vehicles
covering east, west, north, south and middle. The battery recycling industry system
has a very important strategic significance for strengthening the company's ability togather in China's new energy vehicle and power battery recycling market. It will
greatly enhance the company's core position in the global power battery and newenergy vehicle green recycling field, and further enhance the company's Core

Competitiveness and Sustained Profitability.
5. Risk Warning
There are still uncertainties in the specific implementation progress of the project
after the signing of the capital cooperation. The board of directors of the company
will actively pay attention to the progress of this matter and fulfill the obligation of
information disclosure in a timely manner. Investors are advised to make decisions
with caution and pay attention to investment risks.
Special announcement
Board of Directors of GEM Co., Ltd.
June 6, 2021