RUICHANG INTL plans to invest 120 million yuan to establish a joint venture company

According to the Zhitong Finance APP, Ruichang International Holdings (01334) announced that on December 9, 2024, Ruisheng Environmental Engineering (Huangshan) Co., Ltd. (a wholly-owned subsidiary of the company) signed a joint venture agreement with Shanghai Lanrui Environmental Energy Technology Co., Ltd. and Huangshan Ecological Environmental Protection Group Co., Ltd. to establish, operate, and manage a joint venture company. Ruisheng Huangshan will hold 80% of the registered capital of the joint venture, while the other partners will each hold 10% of the registered capital. The joint venture is primarily planned to engage in phosphorus pollution control deployment, phosphorus-containing waste treatment technology, and related waste product recycling.

As of the date of this announcement, the registered capital of the proposed joint venture will be RMB 45 million, and the agreed total contribution will be RMB 150 million, which will be contributed by the contracting parties according to their equity ratios in the registered capital of the joint venture. Therefore, the group expects to have a total capital contribution of RMB 120 million under the joint venture agreement. The group will use its internal resources to fund the capital contribution, and it is expected that the establishment of the joint venture will not have any significant impact on the company's assets, liabilities, and profitability.

The board of directors believes that establishing the joint venture company under the joint venture agreement will enable the group to leverage its existing technological capabilities and expand its business operations. The group is confident that the joint venture's business will complement the group's existing operations and create synergies within the group, as it utilizes the airflow technology used in the manufacturing and production of energy-saving equipment for coal chemical industry in the group's existing business. The joint venture aims to enhance the ecological environment protection level in Huangshan City, an international tourist destination, by constructing this solid waste resource demonstration project and promote subsequent nationwide implementation