Cofco Biotechnology announced that due to the continuous downturn in downstream market demand and reduced use of packaging materials, Jilin Cofco Biochemical Packaging Co., Ltd.'s profitability has decreased, its liquidity has been squeezed, its asset-liability ratio has continued to rise. The company plans to increase the capital of Jilin Cofco Biochemical Packaging Co., Ltd. by 48 million yuan from its own funds. Changheng Co., Ltd. will contribute 31 million yuan, and Cofco Bio-Technology Co., Ltd. will contribute 17 million yuan. After the capital increase, the equity structure of Jilin Cofco Biochemical Packaging Co., Ltd. will change to Changheng Co., Ltd. holding 78.68%, and Cofco Bio-Technology Co., Ltd. holding 21.32%. This capital increase does not constitute a related party transaction nor a significant asset restructuring. After the capital increase, it will reduce the asset-liability ratio of Jilin Cofco Biochemical Packaging Co., Ltd., repay interest-bearing debt, increase bank credit and loan limits, reduce enterprise financing costs, improve the financial situation of the enterprise, and enhance its competitiveness.