Zhejiang Zhongcheng Packing Material (002522.SZ) plans to increase investment in its subsidiary, Zhongli Synthetic Materials.

Zhejiang Zhongcheng Packing Material (002522.SZ) announced that the company intends to increase its capital in its holding subsidiary Zhejiang Zhongli Composite Materials Technology Co., Ltd. (referred to as "Zhongli Composite Materials") in cash, jointly with related party Chen Dakui. The company will invest 348 million yuan, while Chen Dakui will invest 11 million yuan, with the investment price set at 1 yuan per share. Upon completion of the capital increase, Zhongli Composite Materials' registered capital will rise to 1.242 billion yuan. After the capital increase, the company will own 68.31% of the total registered capital and will remain the controlling shareholder of Zhongli Composite Materials. It is reported that Zhongli Composite Materials is primarily engaged in the research, production, and sales of thermoplastic elastomer products (TPE), with its main products being styrenic thermoplastic elastomers and their modified products, including SBS, SEBS, SEPS, and SEP. This represents a core strategic segment of the companys layout in high-end chemical new materials and its efforts to achieve industrial transformation and upgrading, playing an important strategic role in nurturing the company's second growth curve. The current capital increase will facilitate a rapid replenishment of its capital, improve the asset-liability structure, and support increased investment in product research and development, technological industrialization, and product technology upgrades, ensuring the smooth progress of product promotion and R&D projects, thereby promoting the enhancement of existing products and continuously optimizing the product matrix.