Fulin Precision (300432.SZ) and CATL Plan Joint Capital Increase in Jiangxi Shenghua to Support Its Core Business Development

Stock News02-03 18:09

Fulin Precision Co.,Ltd. (300432.SZ) announced that the company and Contemporary Amperex Technology Co.,Ltd. (CATL) plan to jointly increase capital and expand shares in their controlled subsidiary, Jiangxi Shenghua New Material Co., Ltd. (Jiangxi Shenghua). Fulin Precision intends to convert a CNY 500 million claim it holds against Jiangxi Shenghua into an investment, subscribing for CNY 407 million of the new registered capital. CATL plans a cash investment of CNY 747 million to subscribe for CNY 607 million of the new registered capital. Following the completion of the capital increase, Fulin Precision's equity stake in Jiangxi Shenghua will decrease from 79.5719% to 64.3653%, while CATL's shareholding will increase from 18.7387% to 33.0000%. The announcement stated that this joint capital injection into Jiangxi Shenghua is conducive to further introducing the resources of the strategic shareholder and optimizing the equity structure. The incremental cash will be used for the development of Jiangxi Shenghua's main business, which is expected to further enhance its profitability and overall competitive advantage.

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