Zhuzhou Hongda Electronics Corp., Ltd. (300726.SZ) plans to optimize the share capital structure of its controlling subsidiary Hunan Hongwei.

Zhuzhou Hongda Electronics Corp., Ltd. (300726.SZ) announced that the board of directors and the supervisory board have approved the "Proposal on Increasing Capital and Equity Transfer of the Holding Subsidiary and Related Party Transactions." The Company's holding subsidiary, Hunan Hongwei Electronics Technology Co., Ltd. (referred to as "Hunan Hongwei"), will optimize its capital structure through increasing capital and equity transfer. Firstly, by the end of December 31, 2024, Hunan Hongwei will transfer undistributed profits to increase its capital, increasing the registered capital from 24.5 million yuan to 44.5 million yuan, while maintaining the original shareholders' holding ratio. Subsequently, Zhuzhou Hongda Electronics Corp., Ltd. will transfer its 1.1125 million yuan equity (equivalent to 2.5% of Hunan Hongwei's registered capital) to minority shareholder Xu Qianjun at a price of 4.361 million yuan, with the remaining minority shareholders waiving their pre-emptive rights. The price of this equity transfer will be determined based on the unaudited net asset per share provided by Hunan Hongwei at the end of 2024, and will be adjusted based on the final audit data once the 2024 annual audit report is issued for Hunan Hongwei. After this equity transfer, Zhuzhou Hongda Electronics Corp., Ltd. will still hold 51% of Hunan Hongwei's shares, and the scope of consolidation remains unchanged. It is reported that this transaction is aimed at enhancing the cohesion of Hunan Hongwei's core team, strengthening the development momentum of the subsidiary, and meeting the needs of the subsidiary's business development.