Guanghua Technology invested 50 million yuan in lithium battery recycling business

On May 10, Guanghua Technology announced that the company intends to set up Zhuhai Zhongli New Energy Technology Co., Ltd. in Zhuhai City with its own capital of RMB 50 million(tentative name, based on the name approved by the industrial and commercial department, hereinafter referred to as "Zhongli New Energy").

According to the announcement, the scope of business application is research, development, high-tech consultation and service for secondary resource recycling technology; Lithium-ion battery recovery, dismantling, comprehensive utilization and disassembly of disassembly, sales; Collection, storage and disposal of new energy vehicle power batteries; New energy vehicle power battery recycling, cascade utilization, dismantling, comprehensive utilization and sales; Leasing and selling of power battery cascade; Power battery packs, modules and their plastics, hardware, electronic components, structural components, positive and negative powder, electrolyte disposal and sales; Power battery recycling technology and equipment development and sales; The import and export of all kinds of goods and technologies(except those prohibited by laws and administrative regulations, and the operation of limited projects subject to licensing); Ordinary freight. (Projects subject to approval in accordance with the law may be operated only after approval by the relevant departments).

Guanghua technology said that with the rapid development of the new energy industry and the promulgation of the "Interim Measures for the Recovery and Utilization of New Energy Vehicle power battery Management", the recycling market potential of lithium batteries is huge. The investment will set up Zhuhai Zhongli New Energy Technology Co., Ltd. to reduce environmental pollution, promote the sustained and healthy development of the new energy automotive industry, and take into account social benefits and corporate interests. This will help the company accelerate its business expansion in the new energy field. It is a concrete measure to improve the strategic layout of the company's new energy industry.

The capital source of the establishment of a wholly-owned subsidiary company is the company's own capital. The establishment of Zhongli New Energy is expected to have a positive impact on the company's future operating results, which is in line with the company's long-term development strategy and the interests of all shareholders. After the establishment is completed, Zhongli New Energy will become a wholly-owned subsidiary of the company and will be included in the company's consolidated report.

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