Digi. com May 16 newsplaytoearncryptoappRecently, Dezhong Automobile, a company listed on the Beijing Stock Exchange (838030playtoearncryptoapp.BJ) held a performance explanation meeting for the 2023 annual report. At the meeting, Dezhong Automobile focused on introducing the company's scrapped car recycling and dismantling business and the development and construction of power battery recycling projects.
Dezhong Automobile stated that Huaihua Baohui Scrap Car Recycling and Demolition Co., Ltd., a wholly-owned subsidiary of the company, is the main body of a recycling economy industry project for scrapping and utilizing scrapped cars, with an annual dismantling capacity of 20,000 vehicles. In 2023, Huaihua Baohui Scrap Car Recycling and Dismantling Co., Ltd. will achieve operating income of 2,634playtoearncryptoapp.88 million yuan, an increase of 277.35% over the same period last year.
Dezhong Automobile further introduced that the scrapped car dismantling business is limited by transportation costs and scrapped car recycling conditions. It has strong regional attributes and a high entry threshold.playtoearncryptoapp; and the company has a number of invention patents and copyrights related to the dismantling of scrapped cars, and has certain technical advantages. Moreover, recently, 14 national departments jointly issued the "Action Plan to Promote the Swap of Old Consumer Goods for New Products". The company expects that this policy will have a certain promotional effect on the recycling and dismantling of scrapped cars and vehicle retail business.
In terms of power battery recycling business, Hunan Jinrui New Energy Technology Co., Ltd., a subsidiary of Dezhong Automobile, is the main body of the power battery recycling, dismantling and recycling project, which is still in the construction period. Dezhong Automobile expects that the first phase of the project will be from November 2023 to September 2024. After the completion of the first phase of the project, Dezhong Automobile will have a new dismantling and cascade utilization line, battery crushing and sorting line, and battery powder recycling comprehensive recycling system to process 50,000 tons of retired lithium batteries (ternary and LFP series) every year to prepare lithium carbonate production line; the second phase of the construction period is from May 2025 to April 2026.
According to data from the Digbei Research Institute, Dezhong Automobile is a comprehensive automobile service provider in the automobile retail industry. It is currently vigorously developing two major businesses: scrapping and recycling of scrapped cars and recycling of power batteries. Among them, the recycling economy industry project for scrapping and recycling of scrapped cars has been officially completed and put into operation in 2021; while the power battery recycling, dismantling and recycling business is still under construction.