Securities Code: 002203
Securities Abbreviation: Haoliang Shares
Announcement No.: 2026-060
Zhejiang Haoliang Co., Ltd.
Announcement on the Integration of Wholly-Owned European Subsidiary Business
The Company and all members of the Board of Directors guarantee that the content of this information disclosure is true, accurate, and complete, and that there are no false records, misleading statements, or major omissions.
I. Background and Basic Situation of the Business Integration
Zhejiang Haoliang Co., Ltd. (hereinafter referred to as the "Company") completed the acquisition of the European KME Group's five major production bases in Germany, France, Italy, and Spain in 2019. These bases are Messing Beteiligungs mbH, KME Brass Germany GmbH, KME Brass Italy SpA, KME Brass France SAS (hereinafter referred to as "HBF"), and KME Ibertubos S. A. U. After the acquisition, they were uniformly renamed HME. Following the acquisition, HME focuses on the R&D, production, and sales of brass bar, profiles, and wire, as well as copper tube products, continuing to deeply cultivate the European market and undertake high-end copper processing business. Among them, HBF is a wholly-owned subsidiary of the Company registered in France, mainly engaged in the production and sales of brass bar, profiles, and wire.
In recent years, affected by macroeconomic fluctuations, structural adjustments in European manufacturing, and changes in energy prices, the demand in the European brass bar market has declined. The existing production capacity layout of the Company's European bases urgently needs adaptive adjustments. At the same time, each base has its own differences in product structure, cost, and energy conditions, providing opportunities to improve synergistic efficiency through coordinated division of labor. In addition, due to the relatively low proportion of demand in the French domestic brass bar market in Europe and its continuous decline, HBF has experienced continuous losses in recent years. However, France has relative advantages in energy supply, such as nuclear power, and its energy costs are relatively competitive. To optimize the overall European production capacity layout, enhance overall operational efficiency and risk resistance, and leverage HBF's energy advantages to promote its transformation towards high-value-added, energy-intensive products, the Company has decided to systematically integrate its European production bases.
On August 3, 2026, the fifteenth meeting of the ninth Board of Directors of the Company deliberated and approved the "Proposal on the Business Integration of Wholly-Owned European Subsidiaries." This business integration of European subsidiaries does not involve related-party transactions and does not constitute a major asset restructuring as defined by the "Measures for the Administration of Major Asset Restructuring of Listed Companies," and does not require submission to the Company's shareholders' meeting for deliberation.