Glonghui on December 1丨Huahong Technology (002645.SZ) announced that based on strategic planning and business development needs, the company plans to jointly invest with Beijing Car Brothers Technology Development Co., Ltd. (“Beijing Car Brothers”) and Jiangyin Tiancheng Auto Service Co., Ltd. (“Jiangyin Tiancheng”) to establish “Jiangsu Huahong Renewable Resources Co., Ltd.” (provisional name, company name subject to registration approval by the industry and commerce department), with a registered capital of 10 million yuan. Among them, the company invested 6 million yuan, accounting for 60% of registered capital; Beijing Auto Brothers invested 2 million yuan, accounting for 20% of registered capital; and Jiangyin Tiancheng invested 2 million yuan, accounting for 20% of registered capital. After Jiangsu Huahong Renewable Resources Co., Ltd. was established, it became a holding subsidiary of the company.
Its business scope includes recycling and dismantling of end-of-life motor vehicles (including new energy vehicles), processing of scrap steel, scrap copper, and scrap aluminum, recycling and sale of waste glass, waste tires and waste plastics, remanufacturing of motor vehicle parts, recycling and dismantling of power batteries, and technical consultation on resource recycling services. (Subject to the scope of business approved by the company registration authority)
The company's foreign investment to establish a holding subsidiary aims to further expand the scale of the company's end-of-life motor vehicle recycling and dismantling business, increase market share through industry development opportunities; at the same time, utilize the superior resources of various industries, management, technology, equipment, etc., and work together to promote the market-based development of the scrap motor vehicle recycling industry, promote further upstream and downstream integration of the industry chain, explore new business models, and enhance the overall profitability of the company's end-of-life motor vehicle dismantling business.