Overview - 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].

Financial Assistance Overview - The company has approved financial assistance totaling up to RMB 250,000 million to five subsidiaries to meet their working capital needs and improve financing efficiency [2][3] - The financial assistance will be provided through loan agreements signed on May 12, 2025, based on the subsidiaries' funding requirements [2][6] Financial Assistance Details - The financial assistance is set to be provided at an interest rate that refers to the one-year loan rate set by the People's Bank of China, with adjustments based on changes in this rate [3][9] - The assistance is valid from the date of approval until the next annual shareholders' meeting in 2025, and the funds can be reused within this limit [3][8] Risk Management - The financial assistance is directed to subsidiaries that are under the company's control, ensuring effective risk management and monitoring of their operations and financial management [12] - The company has confirmed that the financial assistance will not affect its ongoing operational capabilities or harm the interests of shareholders [12] Financial Assistance Utilization - The funds are intended for the subsidiaries' working capital turnover, allowing for flexible borrowing and repayment within the established limits [9][10] - The company has reported that the total amount of financial assistance provided remains at RMB 0 million as of the announcement date, indicating no overdue loans or violations in lending practices [13]