yyfp(SH:600963) Zheng Quan Zhi Xing·2025-08-13 16:23Core Viewpoint - The company is increasing its investment in its wholly-owned subsidiary, Hunan Maoyuan Forestry Co., Ltd., by converting 1.4 billion yuan of debt into equity, which will improve the subsidiary's financial structure and reduce its debt ratio significantly [1][5]. Group 1: Investment Details - The investment amount is 1.4 billion yuan, which will increase the registered capital of Maoyuan Forestry from 471.48 million yuan to 1.87148 billion yuan [1][2]. - This capital increase does not require approval from the shareholders' meeting and does not constitute a related party transaction or a major asset restructuring as per regulations [2][5]. Group 2: Subsidiary Overview - Maoyuan Forestry was established on June 28, 2005, with a registered capital of 471.48 million yuan and is located in the Hunan Free Trade Zone [2]. - As of the end of December 2024, Maoyuan Forestry had total assets of 3.43913 billion yuan, total liabilities of 2.96072 billion yuan, and an asset-liability ratio of 86% [2][4]. Group 3: Debt Conversion Impact - The company will convert 1.4 billion yuan of Maoyuan Forestry's debt into paid-in capital, reducing its debt ratio from approximately 86% to around 45% [5][6]. - The equity structure of Maoyuan Forestry will remain unchanged, continuing as a wholly-owned subsidiary of the company [5]. Group 4: Purpose and Impact of the Capital Increase - The capital increase aims to align with the State-owned Assets Supervision and Administration Commission's guidelines for reducing leverage in high-debt subsidiaries [5]. - Improving Maoyuan Forestry's financial structure is expected to enhance its risk resistance, operational sustainability, and support future business development [5].