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*ST京蓝(000711.SZ)拟设境外公司在沙特实施含锌固危废资源化利用业务及相关贸易业务

Kingland Technology (000711.SZ) plans to set up overseas companies to implement zinc-containing hazardous waste recycling business and related trading business in Saudi Arabia.

Zhitong Finance ·  Nov 7, 2024 08:14

Kingland Technology (000711.SZ) announced that the company plans to jointly invest with partners [Li Yonghui] and [Li Leilei]...

According to the Zhitong Financial APP, Kingland Technology (000711.SZ) has announced its intention to jointly invest with partners [Li Yonghui] and [Li Leilei] to establish Yunnan Kingland Yunshe Eco-friendly Technology Co., Ltd. (tentative name, subject to the specifics of registration approval, referred to as 'Kingland Yunshe'), with a registered capital of RMB 50 million. The company will contribute RMB 20 million in capital, accounting for 40% ownership; partner [Li Yonghui] will contribute RMB 22 million, accounting for 44% ownership; partner [Li Leilei] will contribute RMB 8 million, accounting for 16% ownership.

Li Yonghui is the actual controlling person of Kingland Yunshe. After the establishment of Kingland Yunshe, it will serve as the main investing entity and set up a wholly-owned subsidiary in Hong Kong, Hong Kong Kingland Gangsha Eco-friendly Technology Co., Ltd. (referred to as 'Kingland Gangsha'), for the subsequent implementation of zinc-containing hazardous waste resource utilization business and related trade in Saudi Arabia. Kingland Gangsha's registered capital is RMB 50 million (or the equivalent in Hong Kong dollars), fully funded by Kingland Yunshe.

Currently, the company's focus on the development of the zinc and indium-containing hazardous waste industry is flourishing, with increasing attention from China and overseas countries on the recycling industry. Against this backdrop, leveraging its advantages in industry segments and existing industry position, the company will actively expand its relevant businesses in "BRICS countries" and countries involved in the Belt and Road Initiative, taking effective measures to gradually open up the company's business growth space.

It is reported that "BRICS countries" and countries involved in the Belt and Road Initiative, such as Saudi Arabia, Egypt, Malaysia, are experiencing a continuous increase in zinc and indium-containing hazardous waste such as steel dust. Furthermore, due to their industrial development stage, there are fewer large-scale and technically advanced enterprises specializing in the utilization of zinc and indium-containing hazardous waste in these countries, making it difficult to meet the needs of local waste-producing enterprises for rapid growth. As a result, the competitive landscape faced by the investing company in local development is weak. Additionally, the prices of zinc and indium raw materials such as steel dust are relatively low in these areas due to fundamental industrial conditions. The extracted metal prices are generally higher than domestic levels, as most of these countries do not produce zinc, indium, and other metals. Therefore, the investing company's local business is expected to achieve profit levels higher than the domestic market.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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