Huazhang Technology (01673) issued an announcement considering Huazhang Environmental Resources, a wholly-owned subsidiary of the company, and Taizhou Hengsheng, a customer...
According to the Zhitong Finance App, Huazhang Technology (01673) issued an announcement. Considering that business transactions between Huazhang Environmental Resources, a wholly-owned subsidiary of the company, and Taizhou Hengsheng Tianyue Metal Co., Ltd., and the customer Taizhou Hengsheng Tianyue Metal Co., Ltd. will continue, on December 6, 2023, Huazhang Environmental Resources signed a renewed general sales agreement with the customer for a period of one year from December 6, 2023 to June 30, 2024 (including the first and last two days). The terms of the renewed Master Sales Agreement are largely the same as those of the expired agreement.
According to reports, the customer is a well-known Chinese metal scrap trader. In order to expand the Group's environmental services business, Huazhang Environmental Resources will continue to conduct business transactions with customers. Furthermore, the Group is always interested in building a broader customer base around the world and seeking more types of waste. The renewal of the master sales agreement will allow the Group to sell scrap metal to customers in the same manner as it sells to unrelated parties of the company. Overall, the conclusion of a renewed master sales agreement is a strategic move for the Group to expand its environmental services business and thereby increase the Group's revenue.