Chemexpress(SH:688131) Zheng Quan Zhi Xing·2025-07-01 16:41Core Viewpoint - The company plans to increase its capital in its wholly-owned subsidiary, Anhui Haoyuan Pharmaceutical Co., Ltd., through a debt-to-equity conversion to alleviate financial pressure and optimize its capital structure [4][6][7]. Summary by Sections 1. Basic Situation of the Capital Increase - The company has formed a fundraising debt of RMB 40 million from Anhui Haoyuan due to the completion of the "Anhui Haoyuan Biological Pharmaceutical R&D Center Construction Project" in 2021 [1]. - For the "Anhui Haoyuan Annual Production of 121.095 Tons of Pharmaceutical Raw Materials and Intermediates Construction Project (Phase I)," the company has a fundraising debt of RMB 527.26 million and a self-funding debt of RMB 164.53 million [2]. 2. Approval Process - The company’s board of directors approved the use of RMB 180 million of raised funds for capital increase on July 12, 2021, and later approved a debt-to-equity conversion of RMB 200 million on March 22, 2024 [3][4]. 3. Purpose and Impact of the Capital Increase - The capital increase aims to relieve Anhui Haoyuan's financial pressure, optimize its asset-liability structure, and enhance its competitive strength [6][7]. - After the capital increase, Anhui Haoyuan's registered capital will rise from RMB 400 million to RMB 800 million, and it will remain a wholly-owned subsidiary of the company [4][7]. 4. Financial Situation of Anhui Haoyuan - As of the end of the first quarter of 2024, Anhui Haoyuan's total assets were RMB 797.34 million, total liabilities were RMB 584.89 million, and net profit was -RMB 113.37 million [6]. 5. Opinions from the Board and Supervisory Committee - The board and supervisory committee agree that the debt-to-equity conversion will not harm the interests of the company or its shareholders, particularly minority shareholders [7][8].