Grace(SH:603256) Shang Hai Zheng Quan Bao·2025-09-19 19:25Core Viewpoint - The company plans to increase capital for its wholly-owned subsidiary, Huangshi Honghe Electronic Materials Technology Co., Ltd., through a debt-to-equity swap amounting to 300 million RMB, raising the subsidiary's registered capital from 700 million RMB to 1 billion RMB [2][3][6]. Group 1: Capital Increase Overview - The capital increase will be executed via a debt-to-equity swap, where the company will convert its 300 million RMB debt owed by Huangshi Honghe into equity [6]. - The registered capital of Huangshi Honghe will increase from 700 million RMB to 1 billion RMB following the capital increase [3][6]. - The board of directors approved the capital increase on September 19, 2025, and it does not require shareholder approval as it does not constitute a related party transaction or a major asset restructuring [4][11]. Group 2: Subsidiary Information - Huangshi Honghe is a wholly-owned subsidiary of the company, with a registered capital of 700 million RMB and located in Hubei Province [5]. - The subsidiary's business scope includes manufacturing and sales of fiberglass and synthetic materials, as well as import and export activities [5]. Group 3: Impact of Capital Increase - The capital increase is expected to enhance the business development of Huangshi Honghe and strengthen the overall capabilities of the company [7]. - The capital increase will not adversely affect the company's normal operations or its consolidated financial statements, as it does not constitute a major asset restructuring [7].