On August 28, 2024, the groundbreaking ceremony for the first phase of Baotou Huahong's "Annual Production of 20000 Tons of High Performance Rare Earth Permanent Magnet Materials Project" was grandly held in Baotou. Wu Junjun, member of the Party Group and first level inspector of Baotou Municipal Government, Wang Xiulian, Deputy Leader and Office Director of Baotou Key Project Coordination and Promotion Leading Group, Gao Yong, Secretary of the Party Working Committee of Rare Earth High tech Zone, and other leaders attended the groundbreaking ceremony. Zhu Dayong, President of Huahong Technology Group, and Xu Junsheng, General Manager of Huahong Technology Rare Earth Magnetic Materials Division, attended the event. Zhang Yongqi, member of the Party Working Committee and Deputy Director of the Management Committee of the Rare Earth High tech Zone, presided over the groundbreaking ceremony.

Mr. Zhu Dayong, President of Huahong Technology, delivered a speech expressing warm congratulations on the smooth start of the project and sincere gratitude to the leaders and guests who took the time to attend the event. He stated that Baotou Huahong's "20000 ton per year high-performance rare earth permanent magnet material project" is another industrial layout of Huahong Technology's entry into downstream application fields around the rare earth industry. Baotou is the "World Rare Earth Capital". In recent years, Baotou City has been fully implementing the "Two Rare Earth Bases" construction action, continuously consolidating and expanding the advantages of the rare earth new materials industry, and promoting the expansion of the rare earth application industry to high-end and cutting-edge fields. The "20000 ton/year high-performance rare earth permanent magnet material project" of Baotou Huahong is an important measure taken by Huahong Technology to fully promote the construction of "two rare earth bases". It is also an important link for Huahong Technology to firmly believe in and vigorously develop the rare earth industry, and complete the closed-loop of the renewable resource recycling industry. Its construction carries Huahong Technology's aspirations and expectations, and also marks a new chapter of development for Huahong Technology. The project is located in the Rare Earth High tech Zone of Baotou City, covering an area of about 140 acres of land, with a construction area of about 60000 square meters and a total investment of 700 million yuan. The total investment for the first phase of the project is 400 million yuan, and it is expected to be put into operation before the end of 2025. The project consists of two phases with a total of 20000 tons. After completion and production, it can achieve an annual sales revenue of 3 billion yuan and a total annual profit and tax of 200 million yuan, which can drive employment of over 600 people.

Huahong Technology is an A-share listed company that was listed on the main board of the Shenzhen Stock Exchange in December 2011. It is a group high-tech enterprise dedicated to serving the global market as a manufacturer of renewable resource processing equipment and a comprehensive utilization of resource recycling. Since entering the rare earth industry in 2019, Huahong Technology has continuously led the technological upgrading and product innovation of rare earth resource comprehensive utilization and its downstream rare earth permanent magnet sector with its leading technology research and development strength and keen insight into industry trends. It has now formed four major business units including rare earth resource comprehensive utilization, permanent magnet materials, renewable resource equipment and operation, and high-end manufacturing of elevator components, covering 23 wholly-owned and holding subsidiaries.