Chunwang Environmental Protection Foreign Investment Announcement (addition Of Wholly-owned Subsidiaries)
Sep 23, 2016

I. Overview of foreign investment

(1) Basic situation

The Company intends to increase the registered capital of Shenzhen Yuming Technology Co., Ltd., a wholly-owned subsidiary, to RMB 1,500,000.00, that is, the newly registered capital of Shenzhen Yuming Technology Co., Ltd. is RMB 1,000,000.00, of which the company subscribes to RMB 1,000,000.00. This foreign investment does not constitute a connected transaction.


(II) Review and voting

On March 14, 2017, the company held the 22nd meeting of the first board of directors to deliberate and approve the “Proposal on Capital Increase of Shenzhen Minming Technology Co., Ltd., a wholly-owned subsidiary”.

Voting: 5 votes in favor, 0 votes against, and 0 votes abstained.


The proposal does not involve related matters and does not constitute a connected transaction and does not need to evade voting. According to the provisions of the company's articles of association, there is no need to submit a general meeting of shareholders for consideration and approval


(3) Other approvals and related procedures required for the transaction to take effect

This foreign investment does not require the pre-approval of the relevant government departments, and it is necessary to report to the local market supervision authority for the relevant change procedures.


Second, the basic situation of the investment target

(1) Funding method

The investment method for this foreign investment is cash.

The capital contribution description of this foreign investment:

The source of funds for the capital increase of the wholly-owned subsidiaries is the company's own funds, and does not involve physical assets, intangible assets, equity investment and other capital contribution methods.


(II) Basic information on investment targets

Investment target name: Shenzhen Yuming Technology Co., Ltd.

Registered address: 8th Floor, Building 1, Zhongtai Science and Technology Park, Yousong Community, Longhua Street, Longhua New District, Shenzhen


Business scope: paper, paper products, desiccant packaging materials, non-woven breathable composite film, heat-sealed aluminum film, sealing film paper, waterproof and breathable materials, furniture, daily product packaging materials, technology development, sales and production; craft gifts, Sales and production of chromatography silica gel, desiccant, anti-static moisture-proof shielding moisture absorption bag, packaging bag; sales of rare earth minerals (restricted items must be licensed before operation); domestic trade; import and export of goods and technology.


The investment scale and shareholding ratio of each major investor before the capital increase:

Shareholder name
Currency
Capital contribution (yuan)
Funded ratio

Shenzhen Chunwang Environmental Protection Technology Co., Ltd.

Renminbi
500,000.00
100%


The investment scale and shareholding ratio of each major investor after this capital increase:

Shareholder name
Currency
Capital contribution (yuan)
Funded ratio

Shenzhen Chunwang Environmental Protection Technology Co., Ltd.

Renminbi
1500,000.00
100%


Third, the purpose of foreign investment, existing risks and impact on the company

(1) The purpose of this foreign investment

The capital increase of the wholly-owned subsidiary Shenzhen Yuming Technology Co., Ltd. is in line with the company's strategic development planning and business development needs, which is conducive to enhancing the capital strength of the subsidiary and providing strong support for the company's business development.


(2) Possible risks of this foreign investment

The capital increase of the wholly-owned subsidiary is conducive to its further exertion of technology and product advantages, which is conducive to the long-term development of the company and will not have a material adverse impact and significant risks on the company's current main business, but the subsidiary still has a certain market. Risk and operational risk. The company will enter


We will improve the governance structure of subsidiaries, clarify business strategies and risk management, improve internal management systems and supervision mechanisms, and actively prevent and respond to possible risks.


(3) The impact of this foreign investment on the company's future financial status and operating results

The capital increase is based on the company's overall development plan and makes careful support for the development of the subsidiary. It will not adversely affect the company's financial status and operating results, and will help enhance the market competitiveness and profitability of the subsidiary. In the long run, the company operates and development has positive significance.


Second, the file directory for reference

Resolution of the 22nd Meeting of the First Board of Directors of Shenzhen Chunwang Environmental Protection Technology Co., Ltd.


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