Subsidiary of Shanghai Baolong Automotive Corporation (603197.SH) intends to set up a joint venture named Weifu Shanghai Baolong Automotive Corporation Co., Ltd.

Shanghai Baolong Automotive Corporation (603197.SH) announced that in order to grasp the development trend of fully active suspension system application in the automotive industry, seize the business development opportunities of fully active suspension motor hydraulic pump technology, and achieve rapid business growth, CKH HOLDINGS, a wholly-owned subsidiary of the company, will jointly invest with Weifu High-Technology Group's subsidiary Weifu Jinning to establish "Weifu Shanghai Baolong Automotive Corporation Co., Ltd". The joint venture company plans to have a registered capital of RMB 400 million, with Heifei Baolong subscribing RMB 180 million, accounting for 45% of the registered capital, and Weifu Jinning subscribing RMB 220 million, accounting for 55% of the registered capital. The joint venture company will integrate Shanghai Baolong Automotive Corporation's technical expertise in air suspension systems, market channel resources, and Weifu High-Technology Group's research and manufacturing advantage in automotive core components such as electric hydraulic pumps, to achieve resource synergy in research and development, manufacturing, sales, and management. They will develop the core component of mass-produced fully active suspension systems, the electric hydraulic pump (MPU), to provide vehicle manufacturers with higher quality and more competitive fully active suspension system electric hydraulic pumps, and promote the widespread application and popularization of fully active suspension systems in the domestic automotive market.