*ST Huayangzi Subsidiary Receives 40 Million Yuan in Additional Funding to Accelerate Strategic Implementation and Promote Industrial Transformation

On March 17, *ST Hua Wang (Stock Code: 603007) announced that the company’s board of directors approved a proposal to increase capital by 40 million yuan to its wholly-owned subsidiary, Suzhou High-tech Zone Chen Shun Hao Jing Management Consulting Co., Ltd. (hereinafter “Shunjing Management”). After this capital increase, Shunjing Management’s registered capital will rise from 1.6 billion yuan to 2 billion yuan, with the company still holding 100% of its equity.

The announcement states that the funds for this capital increase will come from the company’s own resources, with an increase price of 1 yuan per registered capital. The company said this move aims to accelerate financing progress, implement strategic plans more quickly, support industrial transformation and upgrading, and enhance overall competitiveness.

Basic Information of the Capital Increase Target

Shunjing Management was established on June 12, 2025, with Yu Yajun as legal representative. Its registered address is No. 54 Xiangyang Road, High-tech Zone, Suzhou. Its main businesses include enterprise management, management consulting, and information consulting services. Notably, this company is the main entity in the significant asset restructuring where *ST Hua Wang purchased a 55.50% stake in Anhui Niwei Automotive Power System Co., Ltd. with cash.

Financial data shows that as of December 31, 2025, Shunjing Management had total assets of 382.2743 million yuan, total liabilities of 382.2854 million yuan, owner’s equity of -11,100 yuan, operating income for 2025 was 0, and net profit was -11,100 yuan. The asset-liability ratio was 100%.

Changes in Equity Structure Before and After the Capital Increase

Investment Impact and Risk Reminder

The company states that this capital increase will not change the scope of consolidated financial statements nor negatively impact the company’s financial condition or operating results. As of March 16, 2026, the company and its subsidiaries within the consolidated scope have invested a total of 78.3895 million yuan externally (including this increase).

The announcement also notes that the capital increase still requires registration with relevant regulatory authorities and may face risks related to macroeconomic environment, market changes, and operational management. The board of directors has authorized management to handle all procedures related to this capital increase, which does not require shareholder approval.

This capital increase is an important step for *ST Hua Wang to promote strategic transformation, strengthen the capital base of its subsidiaries, and lay a foundation for the smooth implementation of subsequent major asset reorganizations. The market will continue to monitor the company’s further actions and results in industrial transformation.

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