BEIJING, Nov. 14, 2022 /PRNewswire/ -- Recently, Chiho Environmental Group released an announcement on the restructuring of its controlling shareholder, Loncin Group, The content of the announcement shows that "on October 27, 2022, Loncin Restructuring Companies have entered into a restructuring investment agreement (the "Restructuring Investment Agreement") with China Partner (Shanghai) Equity Investment Fund Management Co., Ltd.* ("China Partner (Shanghai) Equity Investment") and Chongqing Development Investment Co., Ltd* ("Chongqing Development", together with China Partner (Shanghai) Equity Investment, the "Restructuring Investors"). At the same time, the announcement further explained the impact of the restructuring information on Chiho and its subsidiary Scholz that: Considering that the Company is not one of the Loncin Restructuring Companies and is independent from the Controlling Shareholders in respect of business, personnel, assets and finance, the Board is of the view that the Restructuring has no material adverse impact on the operation and the financial status of the Company. As at the date of this announcement, the operation and management of the Company are stable and normal." (Note:" The Company "in the announcement refers to Chiho Group and relevant subsidiaries")
In this regard, Chiho and Scholz executives said: "We think this is a positive message. We expect that after the restructuring of Loncin, its business sector will be injected with new vitality and power. Loncin Group is an enterprise that has developed in China for more than 30 years. And it has been successively honored as one of the top 500 enterprises in China and one of the top 500 manufacturing enterprises. As an enterprise with a global business landscape, Loncin has been continuing to contribute its corporate strength to some countries and regions where it's located. And provide a stage for more than 20000 employees to play their roles. Since 2018, the Group has faced macro policy changes, debt problems, tight liquidity. After careful consideration, Loncin announced in 2022 that it would introduce major strategic investors to restructure the group and its 13 operating entities. With the leadership of the local government and the Group's efforts, the overall restructuring has entered a significant progress. Two powerful enterprises, China Partner (Shanghai) Equity Investment Fund Management Co., Ltd. and Chongqing Development Investment Co., Ltd., took the lead and announced that they would jointly become potential investors in the restructuring of Loncin Group and signed an agreement, leading the next important stage of restructuring.
Chiho management team said in the internal letter to employees: "Although Chiho and Scholz have experienced epidemics and serious global economic downturn, the Group still strives to overcome various difficulties and actively ensure the normal operation and stability. The controlling shareholders have always attached great importance to the positioning of Chiho and Scholz in the whole Group, and are always full of confidence in our development. Today, with increasingly severe climate problems, the recycling industry is playing an increasingly important role. In combination with the huge market potential in Europe and China and the continuing high heat of global carbon reduction, we have more reason to believe that Loncin can continue to give greater support to Chiho and Scholz after the restructuring and we will do our best to promote our metal recycling, ELV recycling, and highly forward-looking battery business."
