On October 22, Gelonhui announced that Shanghai Nanyu Electrical Co., Ltd. (referred to as Nanyu Electrical) is a wholly-owned subsidiary of the company. In order to promote the business development of Nanyu Electrical, further enhance organizational vitality and competitiveness, fully mobilize the enthusiasm of management and employees, promote the common growth and development of management and the company, Nanyu Electrical plans to introduce investment through capital increase and share expansion (referred to as this capital increase).
This subscription for the newly increased registered capital of Nanyu Electrical is 4 million yuan, with a subscription price not exceeding RMB 16.4 million (the premium portion shall be included in the capital reserve). The company waives the priority rights for this capital increase. After this capital increase is completed, Nanyu Electrical's registered capital will increase from RMB 60 million to RMB 64 million, and the company's equity stake in Nanyu Electrical will change from 100% to 93.75%. The company remains the controlling shareholder of Nanyu Electrical, and Nanyu Electrical will still be included in the company's consolidated financial statements.
