According to a report from Economic Information Daily on the 26th, Chongqing M&E (02722) announced that its non-wholly-owned subsidiary, Chongqing Chengfei New Materials, received an investment of RMB 270 million from its controlling shareholder, Chongqing M&E Holdings, holding approximately 20.23% equity. The group expects that there will be no related income recognized at the consolidated financial statement level due to the capital increase.

The group stated that all other shareholders have proportionally waived their preemptive rights for the capital increase of Chongqing Chengfei New Materials, resulting in the group's shareholding being diluted from 98.42% to approximately 78.5%. Chongqing Chengfei New Materials will continue to be its controlled subsidiary and will be included in its consolidated financial statements. As for Chongqing Chengfei New Materials, it is engaged in the research and development, manufacturing, sales, operation, and maintenance services of wind turbine blades, with a net profit of RMB 55.03 million last year. The investment will be used for additional registered capital and capital reserves.

The group indicated that the controlling shareholder has strong capabilities in industrial chain integration and significant brand influence, and after the capital increase, it will help Chongqing Chengfei New Materials further expand its market channels. (wh)