Yuanda General Engineering (02163) announced that on December 28, 2023, the company, its wholly-owned subsidiary, Hangzhou...
Zhitong Finance App News, Yuanda Housing & Construction (02163) announced that on December 28, 2023, the company, Hangzhou Yuanda, a wholly-owned subsidiary of the company, and BOC Investment entered into a capital increase agreement, shareholder agreement and other relevant transaction documents relating to BOC Investment's investment in Hangzhou Yuanda.
According to the capital increase agreement, the total investment price that BOC Investment plans to invest in Hangzhou Yuanda is RMB 200 million, of which RMB 506.731 million will be included in Hangzhou Yuanda's registered capital, and the remaining RMB 149 million will be included in the capital reserve fund. After the capital increase is completed, Hangzhou Yuanda's registered capital will increase from RMB 100 million to approximately RMB 150.67 million. The company and BOC Investment will directly hold approximately 66.37% and 33.63% of Hangzhou Yuanyuan's shares respectively. Hangzhou Yuanda will become a non-wholly-owned subsidiary of the company and will continue to be a subsidiary of the company, and its financial results will still be incorporated into the company's financial statements.
According to the announcement, the company experienced a sharp increase in bank financing repayment pressure after being affected by the epidemic and regulation of the real estate industry, and it is necessary to develop new financing channels to replace the risks brought to the company's operations by falling bank financing pressure. As of the date of this announcement, the company's investment in Hangzhou Yuanda far exceeds its registered capital. Hangzhou Yuanda has carried out factory infrastructure construction and equipment capacity layout through loans from the company. Hangzhou Yuanda currently has good business conditions, stable market sales, and profitable operating profits and cash flow. However, in a short period of time, Hangzhou Yuanda's capital was not enough to pay off the company's arrears. Both Hangzhou Yuanda and the company are under great financial pressure. The company believes that the capital increase is in line with the company's strategic direction, and can also help Hangzhou Yuanda to settle its arrears to the company in a relatively short period of time. At the same time, it relieves the financial pressure on the company and Hangzhou Yuanda, and protects the interests of the company and Hangzhou Yuanda.