---
title: "JIANGSU DAGANG plans to increase capital for its subsidiary Gangcheng International Trade through debt-to-equity conversion and transfer its 100% equity"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/236247631.md"
description: "JIANGSU DAGANG announced plans to convert debt to equity for its subsidiary Gangcheng International Trade and transfer 100% of its equity to Urban Investment Materials. Gangcheng International Trade has been operating poorly for a long time and is insolvent. This move aims to integrate resources and focus on the main business. After the capital increase, the registered capital of Gangcheng International Trade will increase from 35.5 million yuan to 95.102 million yuan, and the equity transfer price will be 1.4475 million yuan. After the transfer is completed, Gangcheng International Trade will no longer be included in the company's consolidated financial statements"
datetime: "2025-04-16T13:11:02.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/236247631.md)
  - [en](https://longbridge.com/en/news/236247631.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/236247631.md)
---

# JIANGSU DAGANG plans to increase capital for its subsidiary Gangcheng International Trade through debt-to-equity conversion and transfer its 100% equity

According to the announcement from JIANGSU DAGANG (002077.SZ), Zhenjiang Export Processing Zone Gangcheng International Trade Co., Ltd. (referred to as "Gangcheng International Trade") is a wholly-owned subsidiary of the company, primarily engaged in the chemical supply chain business. Its operating conditions have been poor for a long time and it is insolvent, negatively impacting the overall operating conditions of the company. To further integrate company resources, focus on core business, and divest non-core assets and inefficient operations, the company plans to convert its receivable of 59.602 million yuan from Gangcheng International Trade into equity and transfer 100% of its equity in Gangcheng International Trade to Zhenjiang Export Processing Zone Urban Investment Material Development Co., Ltd. (referred to as "Urban Investment Material").

This debt-to-equity conversion is aimed at optimizing the capital structure of Gangcheng International Trade to facilitate the implementation of the equity transfer. The overall plan is as follows: 1. The company will increase its capital in Gangcheng International Trade by 59.602 million yuan based on its receivable, with the conversion price set at 1 yuan of debt converted into 1 yuan of registered capital in Gangcheng International Trade. After the capital increase, the registered capital of Gangcheng International Trade will increase from 35.5 million yuan to 95.102 million yuan. 2. The simulated book value of all shareholders' equity of Gangcheng International Trade on the assessment benchmark date after the debt-to-equity conversion is 1.4472 million yuan, with an assessed value of 1.4475 million yuan. The pricing for this equity transfer will refer to the assessed value of all equity after the simulated debt-to-equity conversion, with the transfer price set at 1.4475 million yuan. After the transfer is completed, Gangcheng International Trade will no longer be included in the company's consolidated financial statements.

Once the transfer of 100% equity in Gangcheng International Trade is completed, it will no longer be included in the company's consolidated financial statements. The historical accumulated losses of Gangcheng International Trade that the company bears will be limited to the amount contributed by the company, which will have a positive impact on the relevant financial statement data for the current year

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