Zhaofeng Co., Ltd. (300695.SZ) plans to spend 35 million yuan to jointly invest in a joint venture with the controlling shareholder

Zhitong Finance App News, Zhaofeng Co., Ltd. (300695.SZ) announced that the company plans to jointly invest with the controlling shareholder Hangzhou Dazhaofeng Industrial Group Co., Ltd. to establish Mega (Hangzhou) Intelligent Equipment Co., Ltd. (tentative name, final subject to approval and registration by the market supervision and administration department, referred to as “Zhaofeng Intelligent Equipment” or “Joint Venture” for short). The registered capital of the joint venture is RMB 50 million, of which: the company plans to pledge an investment of 35 million yuan with its own capital, accounting for 70% of the registered capital; Mega Industrial plans to pledge an investment of 15 million yuan with its own capital, accounting for 30% of the registered capital.

Since the company is deeply involved in the field of auto parts and has accumulated rich experience in machinery manufacturing, automation, intelligent production, etc., as competition in the auto parts industry intensifies, and the automobile industry continues to develop in the direction of electrification and intelligence and the rise of emerging industries in the future, the company plans to lay out an emerging circuit through investment and establishment of joint ventures to optimize the industrial layout and enhance the company's overall competitiveness and sustainable profitability.