Huami Xincai recently announced that it plans to use its own funds of 10.2 million yuan to join hands with Hebei Shengmi Enterprise Management Consulting Partnership (Limited Partnership) to jointly create a new company. The newly established company will have a registered capital of 20 million yuan, of which Huami Xincai will hold 51% of the shares.

Huami Xincai explained the motivation for this move in the announcement. The company has been committed to building a complete industrial chain based on special rubber and plastic materials and products. In this process, the company actively identifies outstanding companies upstream and downstream of the industrial chain for strategic cooperation. This joint venture with Hebei Shengmi Enterprise Management Consulting Partnership is based on this long-term strategic consideration.

It is understood that this cooperation between Huami Xincai values the rich customer resources owned by the partners. Through the joint efforts of its partners, the company hopes to further expand its production and marketing advantages in the field of special rubber and plastic products, which is not only consistent with the company's overall business layout, but will also have a positive role in promoting the company's long-term development. This investment and establishment of a holding subsidiary will undoubtedly draw a more ambitious blueprint for Huami Xincai's future.