---
title: "LONGZHOU: China Automotive Hongyuan plans to purchase power batteries and carry out after-sales maintenance work"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/224755050.md"
description: "LONGZHOU announced that China National Automotive Industry Corporation Hongyuan plans to purchase CATL power batteries and carry out after-sales maintenance work to address the battery replacement issues of aging new energy city buses. The estimated cost of this procurement is approximately 142 million yuan, which may result in a decrease of about 72.42 million yuan in net profit attributable to the shareholders of the listed company for the year 2024. China National Automotive Industry Corporation Hongyuan will seek compensation for related losses from Weihong Company"
datetime: "2025-01-13T10:54:03.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/224755050.md)
  - [en](https://longbridge.com/en/news/224755050.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/224755050.md)
generator: "portal-rs"
---

# LONGZHOU: China Automotive Hongyuan plans to purchase power batteries and carry out after-sales maintenance work

According to the announcement from LONGZHOU (002682.SZ), Zhongqi Hongyuan is taking measures to properly address vehicle after-sales issues. Based on the announcement (No. 22 of 2024) from the Ministry of Industry and Information Technology, the Ministry of Transport, the Ministry of Public Security, the Ministry of Commerce, the Ministry of Emergency Management, the State Administration for Market Regulation, the National Financial Regulatory Administration, and the National Fire Rescue Administration on August 16, 2024, regarding the safe and orderly replacement of power batteries for old new energy city buses, Zhongqi Hongyuan has proposed to adopt a cross-brand battery swapping method after multiple consultations with Dongguan Public Transport. They plan to purchase CATL power batteries to replace the original Weihong power batteries for after-sales maintenance of vehicles equipped with Weihong batteries. The funds for battery procurement will be sourced from Zhongqi Hongyuan's receivables from Dongguan Public Transport's warranty deposit.

Zhongqi Hongyuan is a holding subsidiary of the company, with 51% of its shares held by the company's wholly-owned subsidiary, Longyan Xinyu Automobile Sales Service Co., Ltd. According to preliminary estimates, Zhongqi Hongyuan will need to pay approximately 142 million yuan in related costs for the procurement of power batteries for after-sales maintenance (specific amounts will be based on actual occurrences). It is expected that this will reduce the net profit attributable to shareholders of the listed company by approximately 72.42 million yuan for the year 2024 due to the advance recognition of related expenses. Zhongqi Hongyuan will seek compensation from Weihong Company for the losses incurred from this after-sales maintenance

### Related Stocks

- [002682.CN](https://longbridge.com/en/quote/002682.CN.md)
- [300750.CN](https://longbridge.com/en/quote/300750.CN.md)
- [300807.CN](https://longbridge.com/en/quote/300807.CN.md)
- [09866.HK](https://longbridge.com/en/quote/09866.HK.md)

## Related News & Research

- [Zhongji Innolight Co.: Revenue and profit surged on booming global AI demand and successful Hong Kong listing](https://longbridge.com/en/news/296610520.md)
- [After gaining EV sway, Chinese carmakers eye full hybrid market](https://longbridge.com/en/news/296736607.md)
- [REG - Windar Photonics PLC - Result of Placing & Direct Subscription](https://longbridge.com/en/news/296816414.md)
- [Constellation’s Volaris buys Brazil cloud communications firm L5 Networks](https://longbridge.com/en/news/296784668.md)
- [ENGINEAI says general-purpose humanoid robot costs have fallen below RMB100,000](https://longbridge.com/en/news/296741129.md)

---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**