COFCO TECH(SZ:000930) Shang Hai Zheng Quan Bao·2025-10-14 21:11Overview - The company plans to increase its investment in Jilin COFCO Biochemical Packaging Co., Ltd. by using up to 90 million yuan of its own funds due to the company's declining profitability and high debt ratio caused by weak downstream market demand and reduced packaging material usage [1][6]. Capital Increase Details - The current ownership structure of Jilin COFCO Biochemical Packaging Co., Ltd. is 78.67919% held by Changheng Co., Ltd. and 21.32082% by the company, resulting in a total ownership of 100% by the company through its subsidiary [2]. - After the capital increase, the ownership structure will change to a minimum of 36.9603% for Changheng Co., Ltd. and a maximum of 63.0397% for the company [2][4]. - The capital increase was approved by the company's board of directors with a unanimous vote of 7 in favor [2][14]. Financial Impact - The capital increase aims to reduce the asset-liability ratio of Jilin COFCO Biochemical Packaging Co., Ltd., repay interest-bearing debts, enhance bank credit limits and financing capabilities, lower financing costs, and improve financial conditions and market competitiveness [7][9]. Company Background - Jilin COFCO Biochemical Packaging Co., Ltd. was established on June 11, 2003, with a registered capital of 79.734287 million yuan [4]. - The company operates in the production of food-grade plastic and paper packaging, among other related activities [4].