Changhong Meiling to Set Up 500 Million Yuan JV For New Washing Machine Factory

Changhong Meiling plans to establish a yuan joint venture, Mianyang Changhong Smart Home Appliance, to construct a new washing machine factory in Mianyang City, Sichuan Province, China.

The company will hold a 99% stake in the new entity, investing 495 million yuan, while its subsidiary Mianyang Meiling Refrigeration will contribute 5 million yuan for the remaining 1% share, according to a Shenzhen Stock Exchange filing on Tuesday.

Mianyang Changhong Smart Home Appliance will build and operate a washing machine manufacturing facility. To facilitate this, the joint venture will participate in a bid to acquire approximately 136,737.72 square meters of land for the factory site, with a maximum bid price of 59.5 million yuan.

Changhong Meiling's A shares closed over 2% higher, while its B shares went up 4% in Shenzhen on Tuesday.

Changhong Meiling will liquidate Sichuan Hongyun Venture Capital Partnership due to slower-than-expected fundraising, according to a Friday filing with the Shenzhen Stock Exchange.

The fund, established in 2023 with a 148 million yuan scale, had not commenced external investments. A liquidation group will oversee the process, which will take 80 working days.

The company has already recovered its 45 million yuan investment and earnings, ensuring no impact on operations.