ZAISHENG TECHNOLOGY(SH:603601) Zheng Quan Zhi Xing·2025-08-21 16:36Core Viewpoint - The company plans to increase its investment in its wholly-owned subsidiary, Xuanhan Zhengyuan Micro Glass Fiber Co., Ltd., by converting a debt of 209.8951 million RMB into equity, thereby enhancing the subsidiary's financial strength and market competitiveness [1][2][7]. Investment Overview - The investment amount is 209.8951 million RMB, which will increase the registered capital of Xuanhan Zhengyuan to 438.0053 million RMB [5][6]. - The debt conversion into equity will not constitute a related party transaction or a major asset restructuring as per relevant regulations [3][5]. Financial Data - As of December 31, 2024, Xuanhan Zhengyuan had total assets of approximately 906.41 million RMB and total liabilities of approximately 416.78 million RMB, resulting in net assets of approximately 489.62 million RMB [4]. - For the first half of 2025, the company reported total assets of approximately 884.91 million RMB and total liabilities of approximately 469.56 million RMB, with net assets of approximately 415.35 million RMB [4]. Impact of the Investment - The conversion of debt to equity is expected to meet the operational and financial needs of the subsidiary, enhancing its asset strength and market competitiveness, which aligns with the company's strategic investment planning [7]. - The company will maintain 100% ownership of Xuanhan Zhengyuan after the capital increase [6][7]. Legal and Procedural Aspects - The debt-to-equity conversion requires approval from market supervision authorities, and the company will assist in the necessary legal procedures for the registration change [6][7].