Hemei Group invests $3.47m in new energy project

Shenzhen Hemei Group (SZSE:002356) announced that its holding subsidiary, Juneng (Wuxiang) New Energy Technology, will invest approximately 25 million yuan ($3.47 million USD) in the "Wuxiang Mabao Integrated Energy Island Project." The project, situated in Wuxiang County, will establish a combined refueling, gas, and hydrogen station. The site will cover 6,056.73 square meters, with a building area of 924.60 square meters. The initial phase will focus on gasoline and LNG, with hydrogen infrastructure added later, pending hydrogen supply and approvals. Hemei Group expects the investment to bolster its strategic layout in new energy, aligning with national policies and improving the company's competitive edge. The investment is subject to regulatory approvals, market risks, and project execution uncertainties. The project's estimated payback period is 9.93 years, with an internal rate of return of 7%.