Breton Technology (HKG:1333) entered into a capital increase agreement involving its subsidiary Breton Energy Saving with a group of investors that includes its controlling shareholder, Chen Fangming, according to a Hong Kong bourse filing Wednesday.

Under the agreement, a trio of investors will funnel 38 million yuan in cash into Breton Energy Saving to raise its registered capital to 50 million yuan from 12 million yuan.

Chen's contribution will be 14.3 million yuan, while Zhou Xi and Xiong Zhongren, the other two investors, will contribute 21.3 million yuan and 2.5 million yuan, respectively.

The transaction will reduce Breton's ownership in Breton Energy Saving to 24% from 100% and the business will cease to be a subsidiary of the company. Its financial results will also no longer be included in the group's consolidated financial statements.