Zhitong Financial and Economic APP News, Urban Construction Design (01599) issued an announcement that on November 10, 2021, the company signed a capital increase agreement with Urban Construction Group, Chengke Yunchuang Enterprise Management, Fuzhou Metro Group, Jiaxing and Zhengchengzhi, Urban Construction installation and Urban Construction Intelligence Control. Accordingly, Urban Construction Group, Chengke Yunchuang Enterprise Management, Fuzhou Metro Group, Jiaxing and Zhengchengzhi agreed to subscribe for 2788.3 million shares, 172.205 million shares, 1568 million shares and 546 million shares of Urban Construction Intelligence Control at a consideration of RMB 142 million, RMB 87.8246 million, RMB 79.968 million and RMB 27.846 million respectively.
After the completion of the capital increase, the registered share capital of Urban Construction Intelligence Control will be increased from 70 million yuan to 136 million yuan.
Immediately before the completion of the capital increase, Urban Construction Intelligence Control is a subsidiary of the company. The main business of urban construction intelligent control is the Yunjiao automation system of urban rail transit with independent intellectual property rights as the core. around the urban rail transit industry to provide communication system, signal system, integrated monitoring system, automatic ticket sales and inspection system, screen door system and other related product development, production and sales, and provide integrated services, the business scope covers subway, tram, urban railway and other rail transit areas. After the completion of the capital increase, the company's stake in urban construction intelligence control will be diluted from 60% to about 30.83%.
The directors believe that the main reasons and benefits for entering into the capital increase agreement are as follows: the main business of urban construction intelligence control is not the key development direction of the company's business, the proportion of business income is relatively low, and the contribution to historical performance is relatively small; there is a greater financing demand for urban construction intelligence control, and the company optimizes the allocation of resources and focuses on the development of the main business; and the company retains a significant impact on urban construction intelligence control, maintains a collaborative relationship and continues to enjoy a return on investment.