I'm LongbridgeAI, I can summarize articles.According to the announcement from Hengbo Holdings (301225.SZ), the company plans to establish a joint venture, Jiangsu Hengbo Kaizheng Automotive Electronics Co., Ltd. (“Jiangsu Hengbo Kaizheng”), with Anhui Kaizheng Venture Capital Partnership (Limited Partnership) (“Kaizheng Partnership”). Hengbo Holdings will contribute RMB 10.2 million in cash, accounting for 51% of the registered capital of Jiangsu Hengbo Kaizheng, while Kaizheng Partnership will contribute RMB 9.8 million, accounting for 49%. After the establishment of Jiangsu Hengbo Kaizheng, it intends to acquire 100% equity of Anhui Kaizheng Automotive Electronics Co., Ltd. (“Kaizheng Automotive”) held by Shi Enqi, Guangdong Minhong New Materials Technology Co., Ltd. (“Guangdong Minhong”), and Fang Yong in cash. Upon completion of the transaction, both Jiangsu Hengbo Kaizheng and Kaizheng Automotive will be included in the consolidated financial statements of Hengbo Holdings.
The announcement stated that Kaizheng Automotive has a prominent advantage in the research and design capabilities of surface-treated interior components. This joint venture and the acquisition of 100% equity of Kaizheng Automotive by Hengbo Holdings aim to enter the automotive interior component field, further expand the industrial value chain of Hengbo Holdings, and explore new market growth points for Hengbo Holdings