Zhejiang Hailiang (002203.SZ) plans to invest in the Jinlong Group and cooperate with it to enhance their ability to negotiate prices with upstream and downstream businesses.

Zhejiang Hailiang (002203.SZ) announced that on December 27, 2024, the 8th Board of Directors of Zhejiang Hailiang approved the proposal to sign the framework agreement for investment in and joint operation with Jinlong Precision Copper Tube Group Co., Ltd. It was agreed that the company would sign the "Zhejiang Hailiang Limited Investment in Jinlong Precision Copper Tube Group Co., Ltd. and Joint Operation Framework Agreement" with Wanzhou Economic Development Group and Jinlong Precision Copper Tube Group Co., Ltd. (referred to as "Jinlong Group"). Zhejiang Hailiang would acquire a portion of Jinlong Group's shares held by Wanzhou Economic Development Group in cash, and would engage in joint operation with Jinlong Group. The company stated that this transaction would strengthen industry cooperation, enhance industry self-discipline, prevent malicious competition, improve bargaining power with upstream and downstream partners, enhance product market competitiveness, promote mutual benefits and common development, and lead the industry in healthy development. This transaction would further enhance the company's profitability, increase the return on net assets, strengthen dividend distribution capabilities, and not harm the interests of small and medium-sized shareholders and investors.