Huachen AI stock surges 20% on strategic partnership deal

Investing.com -- Huachen AI Parking Management Technology Holding Co., Ltd. (NASDAQ:HCAI) saw its shares climb 20% in after-hours trading on Wednesday after announcing a strategic cooperation framework agreement with Beyinda Limited.

Under the terms, Huachen will utilize its market channels and customer base to support the expansion of sales for Beyinda's precision metal structural components in mainland China. Beyinda, a Hong Kong-based manufacturer, is responsible for the production, quality assurance, and delivery of the products.

The partnership is non-exclusive and does not involve any minimum purchase or sales commitments. Specifics such as product specifications, quantities, pricing, and delivery conditions will be set on a per-order basis. No revenue-sharing or commission arrangements have been agreed upon under the framework.

Beyinda's product lineup includes precision metal structural components, sheet metal parts, machined components, and welded structural assemblies. These products serve industries including new energy vehicles, charging infrastructure, energy storage systems, and other industrial applications.

Huachen's financial benefit from the collaboration will be determined by the terms of any specific purchase orders exchanged in the future. The company noted that there is no assurance that such orders will be placed or that the arrangement will yield any revenue.

Huachen AI Parking Management Technology is a China-based supplier of smart parking systems and equipment structural components.

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