Sichuan Hongda's Subsidiary to Invest in 110kV Power Transmission and Transformation Project

Stock News02-10

Sichuan Hongda Co.,Ltd. (600331.SH) announced that its Shifang Nonferrous Metals Branch currently operates with 10kV power supply facilities. These systems have been in service for over 20 years and suffer from outdated technology, aging equipment, and physical deterioration. These issues result in high power transmission losses, insufficient operational efficiency, and potential safety hazards, making the existing infrastructure unable to meet current production requirements for safety, stability, and energy-saving cost reduction. An upgrade is urgently needed.

To ensure a secure power supply for production at the Shifang Nonferrous Metals Branch, optimize its energy consumption structure, reduce electricity costs, and provide stable and reliable power support for future technological upgrades and capacity expansion, the branch plans to invest in the construction of a 110kV power transmission and transformation project. The total investment for this project is approximately 71.43 million yuan, with the Shifang Nonferrous Metals Branch serving as the implementing entity.

This 110kV project represents a significant step for the company to focus on its core operations, optimize production support infrastructure, and reduce costs while improving efficiency. It holds positive implications for the company's long-term development. Upon commissioning, the project is expected to significantly enhance the power supply stability and energy efficiency of the Shifang branch. Through systematic optimization of per-unit electricity costs, basic electricity fees, and technical line losses, it will strengthen the profitability and market competitiveness of the zinc smelting and electrolytic zinc businesses. Furthermore, the ample and reliable power supply will provide strong support for subsequent technical upgrades and capacity utilization at the branch.

Additionally, the project aligns with national policies promoting energy conservation and carbon reduction, injecting momentum into the company's long-term sustainable development.

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