Gelonghui, January 26, 丨 Green Economy (01315.HK) announced that on January 26, 2024, Hong Kong Deyuan (a wholly-owned subsidiary of the company) entered into agreement 1 for trading and selling shares 1 (equivalent to approximately 5.75% of the target company R -TECHO Co., Ltd.'s total issued share capital as of the date of this announcement) and agreement 2 for trading and sale of shares 2 (equivalent to approximately 1.10% of the target company's total issued share capital as of the date of this announcement). The total cost of the acquisition was approximately HK$4.449 million.
The target company is a limited company incorporated under Korean law, mainly engaged in the wholesale and retail of steel and the collection and manufacture of scrap steel.
Through the acquisition of shares in target companies, the Group aims to expand its business to the wholesale and retail of steel and the collection and manufacture of scrap steel. The synergy between wholesale and retail steel and scrap collection, scrap manufacturing and iron ore trading for the Group stems from their complementary roles in the steel production ecosystem. Iron ore is the main raw material for traditional steelmaking processes, and scrap steel provides a sustainable alternative through recycling. As a trade agent, the Group can flexibly adapt to changing market conditions and price dynamics by participating in these two markets. Fluctuations in iron ore prices will affect the cost of steel production, prompting the Group to strategically balance the use of scrap steel to effectively manage costs. Furthermore, the recycling of scrap is in line with the goal of environmentally sustainable development, providing the Group with a diversified approach, which not only reduces economic risks, but also helps raise environmental awareness in the steel production process. Therefore, the synergy between steel wholesale and retail sales, scrap collection and manufacturing, and iron ore trade can enable the Group to optimize resource utilization, enhance resilience to market uncertainties, and contribute to sustainable economic and ecological development.