Shenzhen Senior Technology Material Co.,Ltd. (300568.SZ) has announced a strategic plan to expand its wholly-owned subsidiary, Nantong Dingyuan Precision Technology Co., Ltd. ("Dingyuan Precision"), through a capital increase and share expansion. The company intends to introduce investors including Zeng Tao, Wu Guobiao, He Wenjie, Xingbang Wisdom (Nantong) Management Partnership (Limited Partnership), Shenzhen Senior Dingyuan Precision Technology Partnership (Limited Partnership), and Ryusei Giken Co., Ltd., with relevant joint venture agreements signed recently.

The total investment amount for this capital increase is set at RMB 99 million. Within this transaction, the parent company will partially waive its preemptive subscription rights for the new shares and will contribute RMB 44 million in cash to Dingyuan Precision. The primary purpose of this capital injection is to fund the daily operational activities of the subsidiary.

Following the completion of the capital increase, Shenzhen Senior Technology Material Co.,Ltd. will hold a 45% equity stake in Dingyuan Precision. However, as the company has entered into a "Concert Party Agreement" with all other shareholders of Dingyuan Precision, which carries a validity period of six years, the subsidiary will remain consolidated within the parent company's financial statements after the transaction.