Jiangxi Hungpai New Material (605366.SH) intends to participate in the establishment of a joint venture company, Maitu Hongbo High-Tech Materials, to meet market demand.

Jiangxi Hungpai New Material (605366.SH) announced that the company has signed a joint venture contract with MATOU (Shanghai) Investment Co., Ltd. and MOMENTIVE PERFORMANCE MATERIALS ASIA PACIFIC PTE. LTD. The joint venture company is named "MATOU Hungpai New Materials (Jiangxi) Co., Ltd." The registered capital of the joint venture company is tentatively set at RMB 720 million or equivalent in US dollars, with the company intending to contribute non-monetary assets as initial capital totaling RMB 367.2 million or equivalent in US dollars, representing 51% of the registered capital. The non-monetary assets contribution mainly consists of part of the company's assets being priced for investment; MATOU (Shanghai) Investment Co., Ltd. and MOMENTIVE PERFORMANCE MATERIALS ASIA PACIFIC PTE. LTD. intend to contribute cash in RMB or equivalent in US dollars totaling RMB 352.8 million as initial capital, collectively representing 49% of the joint venture company's registered capital. Specifically, MATOU (Shanghai) Investment Co., Ltd. intends to contribute RMB 172.8 million, representing 24% of the joint venture company's registered capital; MOMENTIVE PERFORMANCE MATERIALS ASIA PACIFIC PTE. LTD. intends to contribute RMB 180 million, representing 25% of the joint venture company's registered capital. It is reported that the company will fully promote the establishment and operation of the joint venture enterprise. In order to fully integrate and utilize the company's existing resources, collaborate with leading international companies in the industry through joint ventures, and achieve a strong alliance to further enhance the technological level and quality performance of the company's functional silane products, meet domestic and international market demand more effectively, and expand the company's brand awareness.