China Pet Inc. Board of Directors Approves 147 Million Yuan Capital Increase for Subsidiary to Strengthen Implementation of Fundraising Investment Projects

[Finance.com News] On March 23, Yantai Zhongchong Food Co., Ltd. (Stock Code: 002891, hereinafter referred to as “Zhongchong Co.”) announced the resolution of the 24th meeting of the 4th Board of Directors. The meeting approved two important proposals, including using 147 million yuan of raised funds to increase capital in a wholly-owned subsidiary for a fundraising project, and designating a special account to temporarily supplement working capital with the raised funds.

The announcement shows that the board meeting was held both on-site and via communication, with 9 directors expected to attend and all 9 attending. The meeting was chaired by Chairman Hao Zhongli, with all senior management present. The procedures complied with the Company Law and Articles of Association, and the resolutions are legal and valid.

Regarding the use of raised funds, the board approved the proposal to use part of the funds to increase capital in the wholly-owned subsidiary Jiashi Agriculture. The purpose of this capital increase is to ensure the smooth implementation of the fundraising project, in line with the use plan, and will not adversely affect the company’s normal operations. Notably, after this capital increase, the company’s external investments over the past twelve months have exceeded 10% of its latest audited net assets. This matter has been reviewed and approved by the sponsor institution without objection.

Additionally, the meeting approved the proposal to designate two accounts as special accounts for temporarily supplementing working capital with the raised funds:

The company stated that management and relevant personnel are authorized to handle subsequent matters such as setting up the special accounts and signing agreements. Both proposals were approved with 9 votes in favor, 0 against, and 0 abstentions.

As a leading enterprise in the pet food industry, Zhongchong Co.'s move to strengthen the implementation of its fundraising project through subsidiary capital increase will help further improve its industrial chain layout and enhance core competitiveness. The relevant announcements and review opinions from the sponsor institution have been disclosed in China Securities Journal, Securities Times, and Juchao Information Network.

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