GZRS(SH:600367) Zheng Quan Zhi Xing·2025-08-05 16:10Overview - The company plans to increase capital for its wholly-owned subsidiary, Hongxing (Xinhui) Fine Chemicals Co., Ltd. (referred to as Hongxing Xinhui), through a debt-to-equity swap amounting to 31.5 million yuan [1][2]. Capital Increase Details - The capital increase will be executed via a debt-to-equity swap, with the total amount set at 31.5 million yuan [1][3]. - This transaction does not involve related party transactions and does not constitute a major asset restructuring, thus it does not require shareholder approval [1][2]. Subsidiary Information - Hongxing Xinhui is a wholly-owned subsidiary of the company, with a registered capital of 10 million yuan [2]. - The company holds 100% equity in Hongxing Xinhui, which is engaged in the mining of barite, an important raw material for barium salt products [2]. Financial Performance - As of December 31, 2024, Hongxing Xinhui reported total assets of 22.64 million yuan and total liabilities of 99.20 million yuan, resulting in a net asset deficit of 76.56 million yuan [2]. - For the first half of 2025, the subsidiary generated revenue of 3.94 million yuan and incurred a net loss of 370.59 thousand yuan [2]. Purpose and Impact of Capital Increase - The purpose of the capital increase is to enhance the financial strength and overall competitiveness of Hongxing Xinhui, improve its asset-liability situation, and support further investments in mining technology upgrades and capacity expansion [3][4]. - The capital increase will not significantly impact the company's consolidated financial statements, including assets, liabilities, current income, or profits [3][4].