On September 20th, Holitech (002217.SZ), the company’s wholly-owned subsidiary, Jiangxi Holitech Technology Co., Ltd. (“Jiangxi Holitech” or “Standard Company One”) and Shenzhen BYD Electronics Department Limited The company (“partial product company” or “standard company 2”) (the above two wholly-owned subsidiaries are collectively referred to as “standard company” below) to implement market-based debt-to-equity swaps by means of cash replenishment and repayment of debts, and introduce strategic investors.

After the capital increase is completed, the company will continue to be the controlling shareholder of the target company and still have actual control over the two target companies.

The capital increase price is determined based on the evaluation results. According to the asset evaluation report issued by Fujian Zhongxing Assets Appraisal Real Estate Land Appraisal Co., Ltd., using the market law as the evaluation conclusion on December 31, 2018, the total equity value of the shareholders evaluated by Jiangxi Holitech is 6.202 billion yuan. The value-added rate is 3.87%. According to the above assessment results, the Agricultural Bank of China Investment increased its capital by 1 billion yuan to Jiangxi Holitech. After the capital increase, the Agricultural Bank of China Investment held 13.16% of its equity.

In addition, according to the asset evaluation report issued by Fujian Zhongxing Assets Appraisal Real Estate Land Appraisal Co., Ltd., using the market law as the evaluation conclusion on December 31, 2018, the value of the total equity of the evaluated shareholders of the company is 17.17. 100 million yuan, the value-added rate is 3.46%. According to the above assessment results, the Agricultural Bank of China Investment increased its capital by 500 million yuan to the Ministry of Materials. After the capital increase, the Agricultural Bank of China Investment held 22.01% of its equity.

Holitech promised that during the period when the Agricultural Bank of China Investment held the equity of Jiangxi Holitech, the annual undistributed profit of Jiangxi Holitech at the end of each year was not less than RMB 65 million. Holitech promised that during the period of equity of the Agricultural Products Investment Holding Co., Ltd., the annual undistributed profit of the departmental products company shall not be less than RMB 32.5 million.

According to the adjustment of the state-owned capital layout structure, specific state-owned and state-controlled enterprises or state-owned enterprises actually participate in capital increase, and investors are introduced into market-based debt-to-equity swaps. While maintaining the company’s controlling interest in subsidiaries, the company’s equity is realized. Diversification of structure. It will help to improve the company’s profitability, cash flow, and dividend levels, and help the company become stronger and bigger.