[Caihua Social News] International Precision (00929.HK) announced that according to the shareholders' resolution of Guangzhou Huitong (an indirect wholly-owned subsidiary of the company), Xinhao (an indirect wholly-owned subsidiary of the company), Huifu Baotong and Zhuhai Yitai agreed to increase their capital. Accordingly, Zhuhai Yutai agreed to increase the registered capital of Guangzhou Huitong by RMB 15 million. As of the date of capital increase, Zhuhai Yutai is owned by Mr. Zeng and Mr. Zhang by 56.67% and 43.33% respectively. The capital increase will be used for the business operation and development of Guangzhou Huitong.
After the completion of the capital increase, Xinhao, Huifu Baotong and Zhuhai Yutai own 50%, 35% and 15% of Guangzhou Huitong respectively. Guangzhou Huitong remains a subsidiary of the company and its financial results will be consolidated in the Group's consolidated financial statements.
In order to achieve sustained growth in the future, it is particularly important for the Group to continue to develop its own brand products and expand its product portfolio. As part of its development strategy, the Group established Guangzhou Huitong to strengthen its work, including working with universities and research institutions in China to develop new forms of products. Therefore, the capital increase can meet the funding needs of Guangzhou Huitong for the research and development of new products, which will help to improve the group's core competitiveness and long-term sustainable development. In addition, Xinhao will exchange Guangzhou Huitong for production machinery, which will also enable Guangzhou Huitong to produce new private brand products after completing the research on self-designed products.