Core Insights - A new company, Nanjing Xianglian Zhouhui Scrap Car Recycling Co., Ltd., has been established with a registered capital of 800,000 RMB [1] Company Overview - The legal representative of the company is Zhang Daojun [1] - The business scope includes licensed projects such as scrap motor vehicle recycling, which requires approval from relevant authorities before operations can commence [1] - General projects include recycling of renewable resources (excluding production waste metals), solid waste management, brand management, marketing planning, and various technical services [1]

Core Viewpoint - The establishment of Foshan Zhihang Scrap Car Recycling Co., Ltd. indicates a growing focus on the recycling and environmental services sector in the automotive industry, with a registered capital of 100,000 RMB [1] Company Overview - Foshan Zhihang Scrap Car Recycling Co., Ltd. has a registered capital of 100,000 RMB [1] - The company operates in various sectors including sales of renewable resources, environmental consulting, and automotive services [1] Business Scope - General projects include: - Sales of renewable resources - Environmental consulting services - Automotive sales and accessories [1] - Retail and wholesale of automotive parts and second-hand car brokerage services are also included [1] - Additional services encompass: - Parking services - Second-hand car trading market operations - Business agency services [1] - The company is involved in the research and development of automotive components and provides towing, rescue, and clearance services [1] Licensing and Compliance - The company is authorized to conduct motor vehicle inspection and testing services, subject to approval from relevant authorities [1] - Operations are conducted in accordance with the business license and approved project documents [1]

Core Viewpoint - The scrap vehicle recycling industry in China is experiencing significant growth driven by supportive policies and an increasing number of qualified enterprises, with a projected recovery volume of 7.872 million vehicles in 2024, a 70.7% year-on-year increase [1][19]. Industry Overview - Scrap vehicles are defined as those that meet national scrapping standards or are severely damaged and do not meet safety or emission standards [3]. - The recycling process involves extracting waste oil, dismantling reusable parts, and recycling materials such as tires, plastics, and electronic devices [3][7]. Industry Development History - Since 1980, China has gradually established vehicle recycling procedures, with significant policy improvements occurring after the implementation of State Council Order No. 715 in 2019, transitioning to a market-oriented model [9]. - The industry has shifted from a rough development model to a more ecological, resource-efficient, and circular economy approach, contributing positively to carbon reduction goals [9]. Development Drivers 1. **Policy Framework**: The government has introduced various policies to enhance the recycling system, emphasizing the importance of scrapping old vehicles and improving recycling channels [11][13]. 2. **Old-for-New Policy**: The implementation of the old-for-new vehicle policy has significantly boosted the recycling industry, with substantial subsidies for scrapping older vehicles [14][15]. 3. **Aging Vehicle Population**: The rapid growth of vehicle ownership since 2000 has led to a large number of vehicles entering the scrapping phase, indicating strong market potential [17]. Current Industry Status 1. **Recycling Volume**: The scrap vehicle recovery volume reached 7.872 million in 2024, with a 58.6% increase in the first quarter of 2025 [19]. 2. **Market Size**: The market for scrap vehicle recycling is estimated to be around 63.83 billion yuan in 2024, with a significant portion of vehicles entering illegal dismantling operations [23]. 3. **Enterprise Distribution**: The number of qualified recycling enterprises has surged from 755 in 2019 to over 1800 by mid-2025, with increasing competition and operational pressures [25]. Future Trends - The industry is expected to undergo rapid growth and restructuring, with a focus on diversified development, refined dismantling processes, and the integration of digital tracking and green technologies [27].