Huahong Technology(002645)2022-12-03 10:10Group 1: Regulatory Changes - The new regulations cancel the quantity control for scrap vehicle recycling enterprises, but qualification recognition remains mandatory [2][3] - The new regulations clarify requirements for storage, dismantling sites, equipment, and operational standards, which is expected to increase the demand for vehicle dismantling equipment [3] Group 2: Market Dynamics - The value of scrapped vehicles will no longer be linked to scrap metal prices but will be market-driven, significantly increasing the recovery prices and encouraging vehicle owners to scrap their vehicles [3] - The company aims to enhance the marketization of its vehicle acquisition channels while strengthening existing ones and exploring new ones [3] Group 3: Business Strategy - The new regulations allow for the sale of dismantled vehicle components that meet remanufacturing conditions to qualified remanufacturers, promoting circular economy practices [3] - The company plans to focus on refined dismantling of scrap vehicles, with reusable parts entering the secondary market, and will process scrap steel for sale to steel enterprises to enhance profitability [3] - The company will extend its downstream industry chain to drive both dismantling equipment and recycling operations, thereby strengthening its core competitiveness [3]