On November 28th, chengbang ecoenvironment (603316.SH) announced that the company increased the registered capital of its wholly-owned subsidiary Chengbang Design Group Co., Ltd. (referred to as "Chengbang Design") by 62.18 million yuan through debt-to-equity conversion.
After this capital increase, the company's debt to Chengbang Design will decrease from 62.18 million yuan to 0 yuan, and the registered capital of Chengbang Design will increase from 68 million yuan to 130.18 million yuan. The company still holds 100% equity of Chengbang Design. Due to the continuous losses in Chengbang Design's business in recent years and its negative net assets, increasing the registered capital through debt-to-equity conversion this time will help optimize Chengbang Design's asset structure, enhance Chengbang Design's risk resistance ability, and is in line with the overall interests of the company.