Zheng Quan Zhi Xing·2025-05-20 09:12Core Viewpoint - The company is establishing a joint venture, "Weifu Baolong Technology Co., Ltd.", with Weifu High Technology Group's subsidiary to capitalize on the growing demand for fully active suspension systems in the automotive industry [1][8]. Group 1: Joint Venture Details - The joint venture will have a registered capital of RMB 400 million, with Hefei Baolong contributing RMB 180 million (45%) and Weifu Jinning contributing RMB 220 million (55%) [1][2]. - The establishment of the joint venture was approved by the company's board of directors on May 20, 2025, and does not require shareholder approval [1][2]. Group 2: Financial and Operational Aspects - Weifu Jinning, the partner in the joint venture, has a registered capital of approximately RMB 346.29 million and operates in various sectors including automotive parts production and sales [2][3]. - The joint venture aims to integrate Baolong's expertise in air suspension systems with Weifu's strengths in hydraulic pumps to develop core components for fully active suspension systems [8]. Group 3: Market Implications - The fully active suspension system is expected to enhance vehicle handling and comfort, with increasing demand from automotive manufacturers [8]. - The joint venture is positioned to fill a gap in the domestic supply of fully active suspension systems, promoting broader application in the Chinese automotive market [8].