Xuelong Group (603949.SH) plans to invest in the establishment of a subsidiary to extend its layout to the die-casting product industry

Zhitong Finance App News, Xuelong Group (603949.SH) announced that the company plans to invest in the establishment of a wholly-owned subsidiary “Ningbo Xuelong Aluminum and Magnesium Technology Co., Ltd.” (the specific name is subject to industrial and commercial approval registration), with a registered capital of 100 million yuan. The company will invest with its own capital.

This time, the foreign investment established a wholly-owned subsidiary. The core company vertically integrates the industrial chain around the main business and extends the layout to the die-casting product chain. The first purpose of this move is to independently control the supply chain of core die-casting parts, reduce dependence on external processing, and improve the stability and timeliness of product production; at the same time, optimize the production process and cost structure through autonomous operation of the die-casting business, and further strengthen the company's industrial chain competitiveness in the field of commercial vehicle cooling system core components. Furthermore, the subsidiary will rely on the company's existing technical accumulation and industry resources to actively expand the external market for aluminum and magnesium die-casting products, break the single business model supporting the parent company, cultivate new profit growth points, and achieve market-based and large-scale development of the die-casting business.