Dymatic Chemicals, Inc. (002054.SZ) plans to increase its capital by 100 million yuan for its holding subsidiary Derong Chemicals.

Dymatic Chemicals, Inc. (002054.SZ) announced that the company plans to use its own funds to increase the capital of its subsidiary Zhejiang Derong Chemical Co., Ltd. (hereinafter referred to as "Derong Chemical") by 100 million yuan. The other shareholder of Derong Chemical, Zhejiang Petrochemical Co., Ltd. (hereinafter referred to as "Zhejiang Petrochemical"), will also increase its capital by 100 million yuan in proportion to its shareholding. The capital increase for the subsidiary Derong Chemical is in order to meet the business development and daily operational needs of Derong Chemical. This capital increase will not lead to any changes in the company's consolidated financial statements. The source of funds for the capital increase is from the company's own funds, and will not have a significant adverse impact on the company's financial and operational status.