Meichang intends to set up a wholly-owned subsidiary to lay out the tungsten wire and diamond wire business.

On the afternoon of August

3, Meichang issued an announcement on the establishment of a wholly-owned subsidiary for foreign investment. The announcement said that Meichang intends to integrate industry resources by setting up a wholly-owned subsidiary company and set up Shaanxi Meichang Tungsten Material Technology Co., Ltd. (Tentative name, hereinafter referred to as subsidiary company, Meichang Tungsten Material Co., Ltd.) With its own capital. The registered capital of the subsidiary is 100 million yuan, and Meichang Company accounts for 100%.

According to the announcement, Meichang Tungsten Material Company is mainly engaged in the research and development capability and quality management of tungsten wire raw materials. Meichang said that the establishment of Meichang Tungsten Material Company will help to integrate resources, match the follow-up process from tungsten wire material itself to diamond wire production, realize the technical mastery and quality management of the whole process, help to improve the quality of tungsten wire diamond wire products and quickly cooperate with the development of new products. After Meichang Tungsten Material Company is put into production, the company will have an annual production capacity of 12 million kilometers of tungsten wire base materials. Meichang Tungsten Material Company still needs some time to put into production, which will not have a substantial impact on the company's operating conditions in the short term.