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Ningbo Huaxiang: Wholly owned subsidiary Huaxiang Qiyuan plans to jointly invest 200 million yuan with Fuao Shares and others to establish a joint venture company
Ningbo Huaxiang announced that to expand opportunities in emerging industries, its wholly-owned subsidiary Huaxiang Qiyuan plans to jointly invest with Fuao Co., Ltd., Fuwei Co., Ltd., and Qizhi Innovation Center to establish a joint venture company, focusing on the research and development, design, manufacturing, sales, and after-sales service of related components.
The registered capital of the joint venture is 200 million yuan, of which Fuao Co., Ltd. will contribute 102 million yuan, holding 51%; Fuwei Co., Ltd. will contribute 58 million yuan, holding 29%; Huaxiang Qiyuan will contribute 30 million yuan, holding 15%; and Qizhi Innovation Center will contribute 10 million yuan, holding 5%.
This transaction constitutes an associated transaction, with a total associated transaction amount of 10.2216 million yuan.
The board of directors has approved the relevant proposal, which does not need to be submitted to the shareholders’ meeting for approval and does not constitute a major asset restructuring.