Zhejiang Huilong New Materials (301057.SZ) intends to indirectly participate in the subscription of ASPL A1 round of preferred shares to expand its overseas business.

Zhejiang Huilong New Materials (301057.SZ) announced that the company plans to conduct overseas investment through its wholly-owned subsidiary GWILL International Investment Co., LTD (referred to as "BVI Company"). The company intends to sign a Series A1 Preferred Stock Subscription Agreement with Ambercycle Singapore Pte Ltd (referred to as "ASPL"), through its wholly-owned subsidiary BVI Company to participate in the subscription of ASPL's issuance of Series A1 Preferred Stock, with the investment amount planned to be $5 million. The announcement states that ASPL is a wholly-owned subsidiary of Ambercycle Inc. (referred to as "Ambercycle"), and Ambercycle holds 100% voting rights in ASPL. Ambercycle is a US-based environmental materials and products research and manufacturing company that transforms waste textiles into new materials, by separating and purifying textile waste through processes, turning discarded textiles into new fabrics (cycora). According to public information, Ambercycle has established cooperation relationships with companies such as Inditex, Gap Inc., Hyosung TNC, and Jiangsu Eastern Shenghong. It is reported that the company's implementation of overseas investment this time can better align and meet the global customers' demand for recycled yarn, especially recycled yarn from waste textiles (T2T yarn), thereby expanding the company's green environmental product line. Additionally, it will introduce high-quality partners and sources of materials for the company's overseas production base.