--- title: "After more than a month of \"withdrawing\" the private placement, COMPASS has invested hundreds of millions of its own funds for capital increase" type: "News" locale: "en" url: "https://longbridge.com/en/news/268872624.md" description: "Compass Technology Development Co., Ltd. has decided to use its own funds to increase the capital of its wholly-owned subsidiary, Mai Gao Securities, by 100 million yuan, raising Mai Gao Securities' registered capital to 1.5 billion yuan. The capital increase aims to support the business development of Mai Gao Securities, aligns with the company's long-term planning, and does not affect the company's financial condition. The capital increase does not require deliberation by the shareholders' meeting and does not constitute a related party transaction or a major asset restructuring. Compass previously achieved control over Mai Gao Securities through the acquisition of Wangxin Securities" datetime: "2025-12-08T00:05:45.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/268872624.md) - [en](https://longbridge.com/en/news/268872624.md) - [zh-HK](https://longbridge.com/zh-HK/news/268872624.md) --- # After more than a month of "withdrawing" the private placement, COMPASS has invested hundreds of millions of its own funds for capital increase Recently, Beijing COMPASS Technology Development Co., Ltd. (hereinafter referred to as COMPASS) announced that the board of directors approved COMPASS to increase capital for its wholly-owned subsidiary, MaiGao Securities, and authorized the company's management to decide and handle matters related to the capital increase. Specifically, according to the operational development needs of MaiGao Securities, COMPASS intends to increase its capital by 100 million yuan (RMB, the same below) using its own funds. After the completion of this capital increase, the registered capital of MaiGao Securities will change from 1.4 billion yuan to 1.5 billion yuan, and MaiGao Securities will still be a wholly-owned subsidiary of the company. According to relevant laws and regulations and the provisions of the Articles of Association, this capital increase to MaiGao Securities falls within the approval authority of the board of directors and does not need to be submitted to the shareholders' meeting for deliberation. This capital increase to the subsidiary does not constitute a related party transaction and does not constitute a major asset reorganization as defined by the Administrative Measures for Major Asset Restructuring of Listed Companies. Data shows that as of the end of September 2025, MaiGao Securities had total assets of 11.34 billion yuan and net assets of 1.44 billion yuan. In the first three quarters of 2025, MaiGao Securities achieved operating income of 569 million yuan and net profit of 178 million yuan. COMPASS stated that this capital increase is to better meet the funding needs for the business development of MaiGao Securities, which will help stabilize the advancement of MaiGao Securities' business, align with the company's long-term planning and core interests, and lay a solid foundation for the company's future development. After the capital increase is completed, the company will continue to maintain full control over MaiGao Securities, and this will not lead to changes in the scope of the company's consolidated financial statements. The funds for this capital increase will come from the company's own funds and will not have a significant impact on the company's current financial condition and operating results, nor will it harm the interests of the company and all shareholders. In 2022, COMPASS acquired Wangxin Securities by participating in its bankruptcy reorganization investment, making Wangxin Securities a wholly-owned subsidiary of COMPASS, which was later renamed MaiGao Securities. In the same year, COMPASS disclosed a private placement plan, intending to issue A-shares to specific targets to raise no more than 2.90458 billion yuan, with all raised funds to be used for increasing capital in its wholly-owned subsidiary, MaiGao Securities, after deducting related issuance costs. By the end of October 2025, COMPASS stated that since the initiation of the stock issuance to specific targets, the company's board of directors, management, and relevant intermediary institutions have continuously and actively promoted various preparatory work. After comprehensive consideration of various factors such as the internal and external objective environment and the company's strategic development goals, and after sufficient communication and careful analysis and demonstration with relevant parties, the company decided to terminate this stock issuance to specific targets and withdraw the relevant application documents. The company will continue to closely monitor the dynamics of domestic and foreign capital markets and reasonably utilize various capital market tools according to its subsequent development needs to support the long-term healthy development of the company's business. Now, COMPASS has chosen to increase capital by 100 million yuan using its own funds Risk Warning and Disclaimer The market has risks, and investment requires caution. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial situation, or needs of individual users. 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