ST Nanning Baling Technology (002592.SZ) released an announcement stating that the company plans to jointly invest with its subsidiary Liuzhou Baling Technology Co., Ltd. (hereinafter referred to as Liuzhou Baling) and Huang Guowei in establishing Anhui Baling Auto Parts Co., Ltd. (tentative name, hereinafter referred to as the project company) in Sanshan Economic Development Zone, Wuhu, Anhui, with the purpose of investing in and building automotive parts production projects to form a nearby supporting supply system for automobile manufacturers.

The registered capital of the project company is planned to be CNY 50 million, of which the company plans to invest CNY 41 million, accounting for 82% of the registered capital; Liuzhou Baling plans to invest CNY 6.6 million, accounting for 13.2% of the registered capital; Huang Guowei plans to invest CNY 2.4 million, accounting for 4.8% of the registered capital. After the establishment of the project company, it will be controlled by the company and included in the company's consolidated financial statements.

The listed company stated that the Anhui automobile industry has accelerated development in recent years. In order to seize this development opportunity, further consolidate and strengthen the company's main business, satisfy customers' nearby supporting needs, deepen cooperation with customers, reduce logistics and manufacturing operation costs, enhance the company's operational efficiency and profitability, the company plans to establish a holding subsidiary and invest in the construction of automotive parts production projects in Wuhu, Anhui, to form a nearby supporting supply system for automobile manufacturers in the Anhui region.