NanFang Precision plans to increase capital by 50 million to take control of its subsidiary, involving related party transactions

On September 23, 2025, NanFang Precision announced that it plans to increase its capital by 50 million yuan to its controlling subsidiary NanFang Changsheng using its own funds. After the completion, its registered capital will increase from 20 million yuan to 70 million yuan, and NanFang Precision's shareholding ratio will rise to 91.43%. Since one of the company's actual controllers, Shi Wei, is the executive partner of Changzhou Jingkong, which is a related party, this transaction constitutes a related party transaction. NanFang Changsheng mainly engages in new energy-related businesses and is currently in the research and development investment phase, having obtained multiple patents, with related products starting mass production. The pricing of this capital increase is reasonable, and the decision-making process is compliant, which will ensure the operational turnover of NanFang Changsheng. However, due to market and other factors, the effectiveness of the capital increase is uncertain. From the beginning of the year to the announcement date, the amount of related party transactions between the company and Changzhou Jingkong was 0 yuan, and the amount of related party transactions with Shi Wei was 20 million yuan