Weilong Co., Ltd. (002871.SZ) issued an announcement. Previously, the company paid cash to its wholly-owned subsidiary Weilong (Hong Kong)...
According to Zhitong Finance App, Weilong Co., Ltd. (002871.SZ) issued an announcement. Previously, the company increased its capital by US$2.55 million in cash to its wholly-owned subsidiary Weilong (Hong Kong) Industrial Co., Ltd. (“Hong Kong Weilong”), while Hong Kong Weilong invested 2.55 million US dollars or other equivalent currency to establish a joint venture with YASTEM in Saudi Arabia. According to the actual operating needs of the company, the company plans to terminate the investment in establishing a joint venture and instead invest in the establishment of a wholly-owned subsidiary.
The company plans to increase its capital to Hong Kong's Weilong by US$10 million in cash. At the same time, Hong Kong Weilong plans to invest US$10 million to establish a wholly-owned subsidiary, Weilong Saudi Limited (WEFLOSAUDILTD.) in Saudi Arabia (hereinafter referred to as the “Saudi subsidiary”) (The name of the Saudi subsidiary is ultimately subject to the name approved by the Saudi Ministry of Commerce and Industry). Shareholder Hong Kong Weilong holds 100% of the subsidiary's shares. After the establishment of the Saudi subsidiary, it will become a wholly-owned subsidiary of Hong Kong Weilong and included in the scope of the company's consolidated statements.
The establishment of this subsidiary can make full use of Saudi Arabia's vast market and the company's own technical advantages, promote the company's business development in the Middle East region, strengthen the company's international market layout, and enhance the company's competitiveness in the international market under the strategy of Saudi Arabia's “localization process”.