Baoding Tianwei Baobian Electric (600550.SH) subsidiary plans to increase capital and expand shares to introduce investors.

Baoding Tianwei Baobian Electric (600550.SH) announced that, in order to increase production capacity for cooling equipment, its wholly-owned subsidiary Baoding Xinsheng Cooling Equipment Co., Ltd. (Xinsheng Company) plans to increase capital and expand its shareholding by introducing investor China Electrical Equipment Group Supply Chain Technology Co., Ltd. (Supply Chain Company) and investor China State-Owned Enterprise Restructuring Fund Phase II Co., Ltd. (Guodiao Phase II), which is being introduced through a public listing on the property rights trading market. Supply Chain Company will contribute RMB 38.2 million, and Guodiao Phase II will contribute RMB 114.6 million. The company is waiving its preemptive right to subscribe to this capital increase. It is reported that the capital increase funds will be used for the green, low-carbon smart factory construction project for cooling equipment. After the capital increase is completed, Xinsheng Company's registered capital will become RMB 68.973 million, and it will change from a wholly-owned subsidiary of the company to a controlled subsidiary, which will not cause a change in the scope of the company's consolidated financial statements.