Core Viewpoint - The company, Anhui Xinke New Materials Co., Ltd., has approved a capital increase for its wholly-owned subsidiary in Hong Kong, aiming to enhance its operational capabilities and respond to market demands [2][10]. Group 1: Board Meeting and Decision - The board meeting was held on February 27, 2026, with all seven directors present, and the decision to increase capital was unanimously approved [1][4]. - The proposal for the capital increase was reviewed and approved by the Strategic Committee prior to the board meeting [3]. Group 2: Capital Increase Details - The investment amount for the capital increase is HKD 100 million, equivalent to approximately RMB 88.48 million based on the exchange rate on February 27, 2026 [7]. - Following the capital increase, the registered capital of the Hong Kong subsidiary will rise from HKD 100 million to HKD 200 million [8][10]. - The capital increase does not involve related party transactions and does not constitute a major asset restructuring as per regulations [8]. Group 3: Impact and Strategic Alignment - The capital increase aims to enhance the management of import and export operations, improve the subsidiary's operational capabilities, and facilitate the company's international market expansion [10]. - The company asserts that the capital increase will not adversely affect its financial status or the interests of shareholders, as the subsidiary remains wholly owned [11].