Summary by Moomoo AI
China Transport Construction announced on January 26, 2024 that its wholly-owned subsidiary Material Corporation signed a capital increase agreement with CITIC Haixi, Xinco Group and CITIC Telecom. Under the agreement, Haisei Exchange will transfer 30% of its shareholding in FTT to the Commodity Company free of charge and increase the capital of RMB 11,318.08 million to the CCP. Upon completion, CITIC Telecom will become a subsidiary of China Transport Construction and its financial results will be included in the consolidated financial statements. The transaction constitutes a connected transaction but is exempt from independent shareholder approval as the maximum applicable percentage is less than 5%. The increase aims to enhance the core competitiveness of the e-commerce business and support business expansion, as well as to enhance the Group's supply chain management level and digitalization.