Transaction Overview - The company's wholly-owned subsidiary, Metalico, Inc, focuses on resource recycling through technological innovation and industrial upgrading, primarily in two sectors: specialized dismantling of automobiles and high-value recovery of metal waste [2] - Metalico, Inc has established over twenty recycling points across five states in the eastern United States, creating a regional recycling network [2] - The company has signed an asset purchase agreement with SA Recycling LLC and its subsidiary PSC Metals, LLC to acquire assets related to the scrap metal recycling business for approximately 24.6 million RMB [2][5] Transaction Details - The assets being acquired include movable and intangible assets, real estate (land and buildings), and related contractual rights [5] - The transaction price was determined based on mutual agreement and market pricing principles [5] - The funding for this transaction will come from the company's own funds [5] Impact on the Company - The integration of new recycling sites significantly expands the company's effective procurement coverage, allowing access to a broader range of recycled resources [6] - The geographical location of the new sites reduces transportation distances from collection to initial processing, lowering logistics costs and time losses while minimizing the carbon footprint [6] - This acquisition strategically enhances the company's market position and bargaining power, enabling better management of cost pressures from market price fluctuations and establishing a solid cost barrier and stability advantage in the competitive landscape [6]