Global New Material International Holdings (HKG:6616) unit Luzhai Chesir Pearl Mica Material will receive a 500 million yuan capital injection from Chongqing International Trust.

The deal includes 13.1 million yuan for registered capital and 486.9 million yuan for capital reserves, according to a Friday filing with the Hong Kong Exchange.

Following the transaction, Global New Material's stake in the unit will decrease from 52.22% to 47.48%. Luzhai Chesir Pearl, which produces and sells synthetic mica and pearlescent products in mainland China, will remain a subsidiary.

Chongqing International will hold 9.09% and gain minority protections, including veto and tag-along rights.

Proceeds will fund business expansion, project development, and operations.

Shares of the chemical company were up about 4% in recent trade.