Zhitong Finance App News, May 13, 2024, Jinjing Xinneng (01783) announced that its wholly-owned subsidiary Jinyang International (Hong Kong) Co., Ltd. acquired about 9420 square meters of land use rights assets from the Hong Kong Special Administrative Region Government by leasing T2 and T3 lots in the EcoPark for 20 years to develop the power battery processing business.
According to the announcement, this site will be used to develop the power battery processing business and improve the industry layout of reverse supply chain management and environment-related services. The 20-year lease will provide business continuity for Jinjing Xinneng's green industry.
According to the main terms of the lease, Jin Yang International (Hong Kong) Limited leased lots T2 and T3 of EcoPark, No. 133 Lung Mun Road, Area 38, Tuen Mun, New Territories, from the Chief Executive of the Hong Kong Special Administrative Region Government. The leasing period is 20 years from May 29, 2024 (or the date the landlord delivers property rights to the tenant, whichever is earlier). The rent is HK$5,87.08 million (HK$489.84 million per month) per year for the first five years, and adjustments can be made according to the CPI data published by the Hong Kong Government Statistics Department every five years thereafter.
According to information, EcoPark (EcoPark), located at 133 Lung Mun Road, Area 38, Tuen Mun, New Territories, has been in operation since 2007 and belongs to the Environmental Protection Department. It is the first facility in Hong Kong built specifically for the development of the recycling industry. Its 14-hectare land has been leased out through public tenders, and the screening criteria for entrants are extremely strict. Only companies that are sufficiently representative in the industry and are highly compatible with Hong Kong's future circular industry development strategy in terms of technology research and development and business models will have a chance to settle in.
Jinjing Xinneng's strategic layout and technical accumulation in the field of cell recycling have made it an industry leader. According to the “Action Plan to Promote Large-scale Equipment Renewal and Consumer Goods Trade-in” reviewed and approved by the State Council, China will promote a new round of equipment renewal and consumption upgrades, and is expected to form an annual market of 5 trillion yuan or more. Among them, the power battery recycling market may reach 140.6 billion yuan by 2030. Jin Jing Xinneng obtained a full set of licenses for the disposal, transportation and export of Hong Kong's first power battery in 2022. The approved total dismantling and treatment capacity is already at the leading level in the industry. Jin Jing Xinneng currently has the first and second largest market share in Hong Kong as well as a battery recycling service provider for other leading car companies. The card position advantage is obvious. The company also reached a cooperation with Hefei Guoxuan, a wholly-owned subsidiary of Guoxuan Hi-Tech, to lay out overseas power battery markets and establish a global service system for battery recycling and recycling.