Xuelong Group (603949.SH) intends to invest in establishing a subsidiary to extend its layout in the die casting product sector.

Xuelong Group (603949.SH) announced that the company plans to invest in establishing a wholly-owned subsidiary "Ningbo Xuelong Aluminum Magnesium Technology Co., Ltd." (the specific name is subject to the approval registration of the industrial and commercial authorities), with a registered capital of 100 million yuan, the company will invest with its own funds. This external investment to establish a wholly-owned subsidiary is aimed at vertically integrating the industry chain around the company's core business, expanding into the die-casting product segment. The main purpose of this is to independently control the supply chain of core die-casting components, reduce reliance on external processing, and improve the stability and timeliness of product production; at the same time, through the independent operation of die-casting business, optimize production processes and cost structures, further strengthen the company's industrial chain competitiveness in the core components of commercial vehicle cooling systems. In addition, the subsidiary will rely on the company's existing technological accumulation and industry resources to actively expand the external market for aluminum and magnesium die-casting products, break the business model of solely serving the parent company, cultivate new profit growth points, and achieve marketization and scale development of die-casting business.