By Rara Suratmi
Lygend Resources & Technology Co., Ltd. announced a connected transaction involving the purchase of equipment valued at US$10.75 million from Ningbo Lihua Port Machinery Heavy Industry Co., Ltd. (Ningbo Lihua), a company controlled by one of Lygend’s major shareholders. This agreement, signed on 28 March 2025, will see Lygend’s Indonesian subsidiary, PT Karunia Permai Sentosa (KPS), acquire five portal cranes as part of its expansion plans.
The equipment will be used to enhance the operational efficiency and cargo handling capacity at KPS’s facilities in Indonesia. The cranes, each with a capacity of 40 tons, will be delivered by 31 August 2025, to Obi Island, North Maluku, Indonesia.
The total consideration for the equipment purchase is US$10.75 million (approximately RMB 74.6 million). Payment will be made in instalments based on the delivery milestones, with 10% of the purchase price due upon receipt of a bank performance guarantee, and the remaining payments staggered as the equipment progresses through design, manufacturing, and delivery stages.
As a 65%-owned subsidiary of Lygend Resources, KPS is involved in a connected transaction due to Ningbo Lihua being an associate of Lygend’s controlling shareholder, Lygend Investment. Lygend Investment holds a 51% stake in Ningbo Lihua, making it a connected party as defined by the Hong Kong Stock Exchange Listing Rules. As a result, the transaction falls under the category of connected transactions and is subject to reporting, annual review, and announcement requirements. However, independent shareholder approval is not required as the transaction is below the 5% threshold for approval.
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Lygend Resources is primarily engaged in the business across the nickel industry value chain, including mining, processing, and the production of key products for the electric vehicle battery sector.
The company’s shares are listed on the Hong Kong Stock Exchange under the stock code 2245.
KPS is a limited liability company incorporated in Indonesia and plays a critical role in Lygend Resources' expansion strategy in Southeast Asia. The company is heavily involved in the operations of the RKEF (Rotary Kiln Electric Furnace) project’s Phase II, which is a key part of Indonesia’s growing nickel industry. KPS operates a processing plant in Indonesia, where it produces high-purity nickel products that are essential for electric vehicle battery manufacturing.
This acquisition of the portal cranes will enhance KPS’s ability to manage and expand its operations at Obi Island, an important location for its nickel processing activities. The cranes will be vital for improving cargo handling at the site, which is crucial for the efficient transport of raw materials and finished products. As KPS continues to scale up its production, these cranes will help ensure that the company maintains high levels of operational efficiency.
Editing by Reiner Simanjuntak
