Zhitong Financial APP News, * ST Mogao (600543.SH) announcement, the company and Gansu Hongyuan Agricultural Science and Technology Co., Ltd. ("Hongyuan Company") jointly funded the establishment of a subsidiary "Gansu Mogao Hongyuan Agricultural Technology Co., Ltd." ("Mogao Hongyuan"). The registered capital of Mogao Hongyuan is 40 million yuan, of which the company contributes 20.4 million yuan with its own cash, accounting for 51% of the total registered capital of Mogao Hongyuan. Hongyuan contributed 19.6 million yuan with physical assets (including trademarks) such as agricultural film production lines confirmed by evaluation, accounting for 49% of the total registered capital of Mogao Hongyuan.
The purpose of this investment to set up a holding subsidiary is to promote the company's biodegradable new materials industry to extend the strong chain, extend to downstream agricultural films and other products, improve the capacity utilization of existing degradable new materials, and expand new sources of profits. to achieve the sustained and healthy development of the degradable new materials industry is in line with the company's development strategy and the interests of all shareholders.