China Xuyang Group announced on September 23 that its wholly owned subsidiary Xuyang Group Limited plans to increase capital in Inner Mongolia Xiangfu New Energy Co., Ltd. by 507 million yuan, of which 217 million yuan will be included in Xiangfu New Energy's registered capital and 290 million yuan will be included in capital reserves. After the capital increase is completed, Xiangfu New Energy's registered capital will increase from 948 million yuan to 1.165 billion yuan, and the company's equity stake in Xiangfu New Energy held through Xuyang Group and Binhai Energy will rise to about 70.14%. Since Xuyang Holdings holds about 36.7% equity in Xiangfu New Energy and is wholly owned by the company's controlling shareholder, executive director, chief executive officer and chairman of the board Yang Xuegang and his spouse Lu Xiaomei, this transaction constitutes a connected transaction.
China Risun GroupTianjin Binhai Energy & Development Co LtdBinhai Energy's stake in Xiangfu New Energy rises to about 70.14% after the 507 million yuan capital injection.
Xiangfu New Energy receives a 507 million yuan capital increase, lifting registered capital to 1.165 billion yuan.
