L&T City(SH:600790) Zheng Quan Zhi Xing·2025-06-18 12:17Core Viewpoint - Zhejiang China Light Textile City Group Co., Ltd. plans to introduce strategic investor ICBC Financial Asset Investment Co., Ltd. to increase capital by 500 million RMB to its subsidiary Shaoxing China Light Textile City International Logistics Center Co., Ltd. [1][5] Transaction Overview - The capital increase aims to broaden financing channels and optimize the asset-liability structure, while the company will maintain actual control over the International Logistics Center post-transaction [1][5] - The transaction does not constitute a major asset restructuring or related party transaction as per regulations [2][5] Counterparty Information - ICBC Financial Asset Investment Co., Ltd. was established on September 26, 2017, with a registered capital of 2.7 billion RMB and is wholly owned by Industrial and Commercial Bank of China [2][3][4] - As of December 31, 2024, ICBC Financial reported total assets of approximately 18.39 billion RMB and net assets of about 5.26 billion RMB, with a net profit of approximately 485.71 million RMB for the year [4] Target Company Information - Shaoxing China Light Textile City International Logistics Center Co., Ltd. was established on July 2, 1999, with a registered capital of 300 million RMB [4] - The estimated valuation of the International Logistics Center as of December 31, 2024, is approximately 1.875 billion RMB [5] Impact of the Transaction - The capital increase is aligned with the State Council's directive to reduce corporate leverage, aiming to lower the asset-liability ratio and supplement long-term operating funds [5] - The transaction is expected to promote high-quality business development without harming the interests of the company and its shareholders, particularly minority shareholders [5]