On November 26, Gelonghui reported that Guancheng New Materials (600067.SH) announced that in order to actively promote the significant asset restructuring currently being planned, clarify the equity and debt relationships between the company and its subsidiary holding companies, and facilitate the company's global strategy transformation, the wholly-owned subsidiary Guancheng Huitai intends to convert its debt of 1500 million yuan owed by Nanjing Wansheng into capital reserves of Nanjing Wansheng at a ratio of 1:1. At the same time, the company plans to convert its debt of 299,999,999 yuan (equivalent to 42,134,853 USD) owed by Hong Kong Datong into the capital of Hong Kong Datong at a ratio of 1:1, and convert its debt of 200 million yuan owed by Guancheng Yuantai into capital reserves of Guancheng Yuantai at a ratio of 1:1 (this part of the capital reserve is exclusively for the company).
After the completion of this capital increase, the registered capital of Nanjing Wansheng and Guancheng Yuantai will remain unchanged, while the registered capital of Hong Kong Datong will change from $1,290 to $42,136,143.
Nanjing Wansheng is a wholly-owned subsidiary of the company’s wholly-owned subsidiary Guancheng Huitai. The company holds 100% equity of Guancheng Huitai, and Guancheng Huitai holds 100% equity of Nanjing Wansheng. The equity structure of Nanjing Wansheng remains unchanged before and after the capital increase.
