"Borrowing a Ship" to Expand Overseas Business Reach: Hualing Cable Partners with Hunan International Trade Group

Relying on a strong partner brings great benefits. Hualing Cable (001208.SZ) announced today that it has signed a strategic cooperation agreement with Hunan ITG Group, which is expected to accelerate the former's overseas business expansion.

Today, Hualing Cable issued an announcement stating that the company recently signed a "Strategic Cooperation Agreement" with Hunan ITG Group. Both parties will fully leverage their respective advantages in industrial resources, trade platforms, market channels, and R&D to achieve resource sharing and complementary strengths in overseas business, jointly enhancing market competitiveness. This agreement constitutes a related-party transaction and is valid for three years.

Public information shows that Hunan ITG Group is a significant subsidiary of Hunan Steel Group. Established on December 19, 2024, the group was built on the foundation of Hunan Hualing Resource Trading Co., Ltd., integrating high-quality trade assets within the province, such as Hunan Hualing E-commerce Co., Ltd. and Hunan Machinery Equipment Import and Export Co., Ltd., to create a first-class commercial enterprise.

Hunan ITG Group focuses on five major sectors: mineral energy, bulk trade of agricultural and forestry products, metal materials and deep processing, medical equipment, electromechanical equipment, ships and automobiles, supply chain management services, and overseas engineering services. It is committed to becoming a driving force for Hunan enterprises to "go global."

It is worth noting that provinces and cities such as Anhui, Zhejiang, Hubei, and Xiamen have long established state-owned trade platforms, playing a crucial role in connecting global industry chains. For example, Xiamen ITG, with over 40 years of industry experience, has continuously advanced its internationalization process, building a channel network that covers bulk commodity resources at home and abroad, becoming one of the "Big Four" domestic bulk supply chain enterprises.

Although Hualing Cable stated that this strategic cooperation agreement serves as a general framework for collaboration between the two parties, it is expected to have no significant impact on the company's revenue and profit for the current year. The impact on future financial conditions and operating performance will depend on the progress and implementation of specific projects.

However, the newly established Hunan ITG Group has already set its goals, striving to achieve sales revenue of over 65 billion yuan and an export value of over 10 billion yuan by 2025. By the end of the "15th Five-Year Plan," it aims to achieve sales revenue of over 100 billion yuan and an export value of over 50 billion yuan.

At the end of last December, Hualing Cable stated during a survey that since last year, the company's indirect go-global business had achieved significant growth. The company is analyzing domestic and international trends and industry market dynamics, planning to expand its overseas market by building a foreign trade team and connecting with trade resources in eastern regions.

Regarding this partnership with Hunan ITG Group, Hualing Cable stated that the two parties will cooperate in areas such as centralized procurement malls, procurement platforms, logistics and warehousing, property rights supervision, equipment import and export agency, international market development, and business consulting. Both parties will enjoy priority cooperation under equal conditions, with specific details to be outlined in separate project cooperation agreements.

We are in the grand context of the Fourth Industrial Revolution, where emerging fields such as smart cities, NEVs, and 5G communications are evolving rapidly. As indispensable infrastructure, the technological innovation and ecosystem construction of wires and cables are particularly urgent. Under the dual circulation strategy of domestic and international markets, China's wire and cable industry must focus on developing new productive forces, set new goals, create new advantages, and achieve high-quality development.

To strengthen communication and cooperation among peers in the wire and cable industry and address future industrial changes, enhance industry chain collaboration and exchange, and gain a deeper and more comprehensive understanding of relevant policies and market developments, SMM will host the 2025 SMM (3rd) Wire and Cable Industry Development Conference and Wire and Cable Industrial Exhibition on May 22-23, 2025! We look forward to working together with all peers to jointly plan the blueprint for the industry's future development!