Beijing GeoEnviron Engineering & Technology (SHA:603588) intends to increase the capital of subsidiary Jiangxi Xinke by 500 million yuan via a debt-to-equity swap.
The move will raise Jiangxi Xinke's registered capital to 1.5 billion yuan from 1 billion yuan, according to a Wednesday filing with the Shanghai bourse.
The capital increase is expected to boost the operational capacity of Jiangxi Xinke's resource recovery and comprehensive utilization project and reduce debt repayment pressure.
Shares of Beijing GeoEnviron Engineering & Technology closed nearly 3% higher Thursday.
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