HFCC(SZ:002806) Zheng Quan Zhi Xing·2025-08-21 05:39Core Viewpoint - The company plans to establish a joint venture, Xinjiang Huafeng New Materials Technology Co., Ltd., with an investment of RMB 12 million from its wholly-owned subsidiary, Zhaoqing Huafeng Electronic Aluminum Foil Co., Ltd., to build a production line for high-voltage aluminum electrolytic capacitor foil with an annual capacity of 4 million square meters, with a total investment of RMB 210 million [1][2][19]. Group 1: Investment Overview - The joint venture will be established with a registered capital of RMB 20 million, where Zhaoqing Huafeng will contribute RMB 12 million (60%) and Huaying Investment will contribute RMB 8 million (40%) [2][10]. - The project aims to enhance the company's product line and meet the growing demand for high-voltage aluminum electrolytic capacitor foil in the market [19]. Group 2: Related Party Transactions - The joint venture involves a related party transaction as Huaying Investment is an entity associated with the company, but it does not constitute a major asset restructuring as per regulations [3][4]. - The board of directors and the independent directors have approved the transaction, confirming that it aligns with the company's strategic development needs and will not adversely affect the interests of shareholders, especially minority shareholders [4][5]. Group 3: Project Feasibility and Market Outlook - The project is strategically located in Xinjiang, an area with abundant electricity resources, which is advantageous for reducing operational costs [7][19]. - The demand for high-voltage aluminum electrolytic capacitor foil is expected to grow, driven by technological advancements and increasing market needs, indicating a positive market outlook for the project [7][19].