Chengdu Haoneng Technology (603809.SH) plans to establish a joint venture company to invest in the construction of a precision casting (Luzhou) production base project, deepening the layout of the entire differential industry chain.

Chengdu Haoneng Technology (603809.SH) announced that, in order to deepen the company's layout of the entire industry chain of differentials, improve the casting capabilities of differential housings and other components, the company has signed a joint venture contract with Suzhou Ishikawa Precision Manufacturing Technology Co., Ltd. (hereinafter referred to as "Suzhou Ishikawa") to establish Haoneng Ishikawa (Luzhou) Precision Manufacturing Co., Ltd., with a total investment of 200 million yuan. The company and Suzhou Ishikawa each subscribed 100 million yuan in cash, respectively holding 50% of the shares of the joint venture company for a period of 30 years. The company and Suzhou Ishikawa have signed an "Investment Cooperation Agreement" with the Lugu Economic Development Zone Working Group in Sichuan, agreeing that the joint venture company will be responsible for investing in the construction and operation of the "Haoneng Ishikawa Precision Casting (Luzhou) Production Base Project" in the Lugu Economic Development Zone of Sichuan, with a total investment of 200 million yuan. It is reported that this investment is a strong move by the company to strengthen and complete the industrial chain, which will help promote technical synergy innovation in the upstream and downstream of the industrial chain and is an important step for the company to deepen the layout of the entire industry chain of differentials. Suzhou Ishikawa will bring 70 years of casting technology and management experience to the joint venture company, accelerate the innovation and iteration of differential housing technology, improve product accuracy, delivery efficiency, and yield, and provide strong guarantees for the company to provide high-quality differential components and assemblies to global customers. The company currently has core capabilities in the design, development, precision manufacturing, and assembly of differential assemblies for new energy vehicles, and its sales network covers most mainstream new energy vehicle companies in China. The joint venture company will deeply integrate the technical equipment, market, personnel, and plant of the shareholders on both sides related to differential housing, which will help the company provide customers with one-stop solutions, enhance customer stickiness, provide competitive products to more high-quality customers, and increase market share. This investment will help the company leverage its technological advantages in the casting process of differential housings, move towards high value-added areas, promote the company's high-quality development, and reduce logistics costs. In the future, the joint venture company will have a casting capacity of over tens of millions of differential housings per year, continuously and steadily improving the company's profitability and shareholder returns.