On August 26, Guolong announced that jiangsu huahong technology (002645.SZ) disclosed that its wholly-owned subsidiary, Jianxin Tai Technology Co., Ltd. (hereinafter referred to as "Xintai Technology"), intends to establish a holding subsidiary (hereinafter referred to as the "target company") with Jiangxi Xinhenghui Venture Investment Co., Ltd. (hereinafter referred to as "Xinhenghui") for business development needs. The target company will mainly engage in the recycling, dismantling, and reuse of waste electric vehicle motors and new energy motors to ensure the stable supply of rare earth resource utilization business raw materials. The registered capital of the target company is RMB 30 million, of which Xintai Technology contributes RMB 16.5 million, accounting for 55% of the registered capital; Xinhenghui contributes RMB 13.5 million, accounting for 45% of the registered capital. After the establishment of the target company, it will become a holding subsidiary of the company.
This external investment and establishment of a holding subsidiary by Xintai Technology is mainly for the sequential utilization of neodymium iron boron permanent magnet materials in waste electric bicycles, waste electric vehicle motors, and waste industrial permanent magnet motors, thereby expanding the raw material source of the company's rare earth resource utilization business and stabilizing raw material procurement prices; at the same time, it reduces the environmental pollution caused by industrial waste and increases the recovery rate of rare earth resources.
