According to the announcement from Weihua New Material (603310.SH), based on the principles of resource integration and complementary advantages, the wholly-owned subsidiary Shaoxing Weihua and Meilan New Material plan to jointly invest in the establishment of a joint venture company, Zhejiang Weilan Refrigeration New Material Co., Ltd. (tentative name, subject to industrial and commercial registration). The registered capital of the joint venture company is RMB 100 million, of which Shaoxing Weihua will contribute RMB 65 million in cash, accounting for 65% of the registered capital; Meilan New Material will contribute RMB 35 million in cash, accounting for 35% of the registered capital. After the establishment of the joint venture company, it will become a holding subsidiary of the wholly-owned subsidiary Shaoxing Weihua and a controlled subsidiary of the company, included in the company's consolidated financial statements.

The establishment of the joint venture company between the wholly-owned subsidiary and Meilan New Material will achieve resource sharing and complementary advantages for both parties. The joint venture company will rely on the company's rich experience in the field of fluorine-containing intermediates, combined with Meilan New Material's technical accumulation in the refrigerant field, to jointly promote the large-scale production of HFO-1234yf. To fully utilize the resource and technical advantages of both shareholders, the joint venture company will entrust the company's subsidiary Zhejiang Fanghua Chemical Co., Ltd. (referred to as "Fanghua Chemical") to process and produce HFO-1234yf series products, while the joint venture company will be responsible for the market expansion and sales of related products