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It is reported that the first phase of the newly established joint venture company in Erdos in Inner Mongolia has a registered capital of 40 million yuan, TCL has invested 19.6 million yuan and holds 49% of the shares; Yili Group has invested 20.4 million yuan and holds 51% of the shares. TCL is investing in a factory with an annual output of 3 million LCD TVs in Hohhot, Inner Mongolia. At the same time, it is uncertain whether it can apply for coal resource allocation according to local policies. If approved, it will be handed over to the joint venture according to reasonable valuation. Company development. The two parties agreed to cooperate with Inner Mongolia to explore other mineral resources projects in the joint venture, and there are no specific exploration projects so far.
In addition, Yili Group intends to increase its capital to Xinjiang TCL Energy Co., Ltd. (hereinafter referred to as “Xinjiang TCLâ€) with a cash of 45 million yuan and hold a 50% stake in the new company after the capital increase. The two parties cooperate to develop energy and mineral resources in Xinjiang through joint ventures. Development project. Xinjiang TCL is a subsidiary of TCL registered in Urumqi, Xinjiang in July 2010. The registered and paid-up capital is 20 million yuan. After this capital increase, TCL will hold 50% of the equity of Xinjiang TCL.
There are still uncertainties in the implementation of the resource projects involved in the cooperation and the obtaining of relevant licenses. This agreement is a framework agreement for strategic cooperation between the two parties. When conducting specific cooperation business, the company will perform the approval procedures and disclosure obligations accordingly. 
On April 6, 2012, TCL's wholly-owned subsidiary, Huizhou TCL Resources Investment Co., Ltd. (hereinafter referred to as “TCL Investmentâ€) and Yili Resources Group Co., Ltd. (hereinafter referred to as “Yili Groupâ€) signed the “Investment Cooperation Framework Agreementâ€. The two parties intend to establish joint ventures in Inner Mongolia and Xinjiang to jointly develop projects such as coal resources and metal mineral resources.