CMST Development (600787.SH) plans to increase the capital of Zhongchuanghengke Internet of Things System Co., Ltd. through debt-to-equity conversion.

CMST Development (600787.SH) announced that the company plans to transfer 65% of the debt rights held in Zhongchu Hengke IoT System Co., Ltd. (hereinafter referred to as "Zhongchu Hengke") to China Packaging Co., Ltd. (hereinafter referred to as "China Packaging"). Upon completion of the debt transfer transaction, CMST Development plans to increase its holding of Zhongchu Hengke's 35% debt rights to Zhongchu Hengke's paid-in capital at a ratio of 1:1 (with each yuan of debt rights corresponding to a price of 1 yuan). After the implementation of this debt-to-equity swap, the company's registered capital in Zhongchu Hengke will increase by 84.3145 million yuan. This transaction is beneficial for CMST Development to focus on its main responsibilities and core business, enhance its core competitiveness, and promote the company's high-quality development. After the completion of this transaction, the target company will no longer be included in the company's consolidated financial statements. This equity transfer will not have any adverse impact on the company's production and operation, will not have a significant adverse impact on the company's financial condition, and will not harm the legal rights and interests of the company and all shareholders.