The Zhitong Finance App learned that China's Tongpo (01763) rose nearly 5% in the intraday period. As of press release, it had risen 4.75% to HK$12.13, with a turnover of HK$1,312,600.
According to the news, China Tongfu recently announced that CNNC Qualcomm, a non-wholly-owned subsidiary of the company, plans to increase its capital through a public listing process on the Beijing Equity Exchange. The board of directors has decided to approve the potential capital increase. The proposed capital increase will correspond to CNNC Qualcomm's additional 17,645,851 shares, with an equity ratio of 20%. Potential capital increases must be publicly listed through an approved equity exchange. Potential capital increases will be carried out through the Beijing Equity Exchange. The selected investors will enter into capital increase agreements in accordance with the relevant rules of the Beijing Property Exchange and relevant Chinese laws and regulations.
According to the announcement, the purpose of this capital increase is to meet the capital requirements of CNNC Qualcomm's future business development and capital expenditure, and to introduce strategic investors with relevant industrial resources. According to CNNC Qualcomm's business development plan, it plans to increase R&D investment in fields such as novel radioactive sources and source-containing equipment during the “15th Five-Year Plan” period, promote the construction of production bases, and gradually extend the existing industrial chain through potential acquisitions. Given that the above business development plan involves large capital requirements, and the existing internal resources of CNNC Qualcomm are insufficient to fully meet the relevant capital requirements, this capital increase is expected to help supplement its development capital and optimize its capital structure.