Zhejiang Zhongcheng (002522.SZ) plans to increase capital in subsidiary Zhongli Synthetic Materials

According to the Zhitong Finance App, Zhejiang Zhongcheng (002522.SZ) announced that the company plans to jointly increase the capital of the company's holding subsidiary Zhejiang Zhongli Synthetic Materials Technology Co., Ltd. (“Zhongli Synthetic Materials”) in cash. Among them, the company increased its capital by 348 million yuan, and Chen Dakui increased its capital by 11 million yuan. The capital increase prices are 1 yuan/share. After the capital increase was completed, the registered capital of Zhongli Synthetic Materials increased to 1,242 billion yuan. After the capital increase, the company accounted for 68.31% of the total registered capital and is still the controlling shareholder of Zhongli Synthetic Materials.

According to reports, Zhongli Synthetic Materials is mainly engaged in the R&D, production and sales of thermoplastic elastomer products (TPE). The main products are styrene-based thermoplastic elastomers and their modified products, including: SBS, SEBS, SEPS, SEP, etc., which are the core strategic sector for the company to lay out new high-end chemical materials and achieve industrial transformation and upgrading, and undertakes the important strategic function of cultivating the company's second growth curve. The company's current capital increase is conducive to quickly replenishing its capital, improving its balance and liability structure, supporting it to increase product research and development, technology industrialization and product technology upgrading efforts, fully guaranteeing the smooth progress of product promotion and R&D projects, improving the quality and efficiency of existing products, and continuously optimizing the product matrix.