Gelonghui July 31 | China Xuyang Group (01907.HK) announced that in order to respond to the “three go, one reduction and one supplement” policy requirements of the People's Republic of China's supply-side reform and unswervingly promote the sustainable development of the Group's business, the company's subsidiary Dingzhou Tianlu New Energy Co., Ltd. (“Dingzhou Tianlu”) introduced Agricultural Bank Financial Asset Investment Co., Ltd. to increase the capital by RMB 0.45 billion on July 31, 2024. Dingzhou Tianlu currently holds 65.10% and 34.90% of the shares respectively by Hebei Xuyang Energy Co., Ltd., a subsidiary of the company, and BOC Financial Asset Investment Co., Ltd.
After the capital increase was completed, Hebei Xuyang Energy, BOC Investment and Agricultural Bank Investment held 50.0002%, 26.8050% and 23.1948% of the shares in Dingzhou Tianlu, respectively. Dingzhou Tianlu will continue to be a subsidiary of the company, and the group still has actual control over the company.
Agricultural Bank Investment is a limited liability company incorporated in China. It is a wholly-owned subsidiary of Agricultural Bank of China Co., Ltd. (its A shares are listed on the Shanghai Stock Exchange, stock code: 601288; its H shares are listed on the main board of the Hong Kong Stock Exchange Limited, stock code: 01288). Its scope of business includes carrying out debt-for-equity swaps and supporting services; raising funds from qualified social investors to implement debt-for-share swaps according to law and regulations; issuing financial bonds specifically for debt-for-share swaps; and other businesses approved by the Bank of China supervisory authority.
Dingzhou Tianlu is a limited liability company mainly engaged in the production of fine chemical products. Its registered capital is RMB 999.9968 million. This capital increase introduced long-term equity capital for Dingzhou Tianlu. These funds are earmarked to repay interest-bearing liabilities. In addition to meeting the Group's capital needs, optimizing the balance sheet structure and reducing the balance sheet ratio can also enhance the Group's capital strength. In the long run, enhance the Group's core competitiveness and sustainable development capabilities, and enhance the overall interests of the company's shareholders.