Ningbo Changhong Polymer Scientific and Technical Inc. (605008.SH) plans to increase its capital in its wholly owned subsidiary by 420 million yuan through debt-to-equity conversion.

Ningbo Changhong Polymer Scientific and Technical Inc. (605008.SH) announced that Changhong Biotechnology, as a wholly-owned subsidiary of the company, is an important source of the company's operating income and net profit. In order to enhance the financial strength and comprehensive competitiveness of Changhong Biotechnology, and to further support its external investments, industrial layout, and capacity expansion, the company plans to increase its capital by 420 million RMB through debt-to-equity swaps for Changhong Biotechnology. After this capital increase, the registered capital of Changhong Biotechnology will increase from 750 million RMB to 1.17 billion RMB. After the increase in capital, Ningbo Changhong Polymer Scientific and Technical Inc. will own 100% of the registered capital of Changhong Biotechnology.