Zhejiang Zhongcheng: Plans to increase capital by 348 million yuan to take control of its subsidiary, raising its stake to 68.31%.

Zhejiang Zhongcheng announced that the company and its controlling subsidiary, Zhongli Composite Materials, plan to increase capital by a total of 359 million yuan, with the company contributing 348 million yuan and Chen Dakui contributing 11 million yuan, while Han Bingyong and Gu Hanjin will not participate. After the capital increase, the registered capital of Zhongli Composite Materials will rise from 883 million yuan to 1.242 billion yuan, and the company's shareholding ratio will increase from 56.67% to 68.31%, maintaining its status as the controlling shareholder. Since Chen Dakui is a related natural person, this capital increase constitutes a related party transaction and requires approval from the shareholders' meeting, but does not constitute a major asset reorganization. The net assets of Zhongli Composite Materials are negative, with a debt-to-asset ratio of 109.03%.