According to the announcement from Xinfengming group (603225.SH), the company's wholly-owned subsidiary, Tongxiang Zhongwei Chemical Fiber Co., Ltd. (referred to as 'Zhongwei Chemical Fiber') and Tongxiang Linhang Economic Zone Xinshi Town Development and Construction Co., Ltd. (referred to as 'Linhang Xinshi Development and Construction') jointly increased the registered capital of Tongxiang Hongyi Heat and Power Co., Ltd. (referred to as 'Hongyi Heat and Power') by 0.1 billion yuan in proportion to their shareholding, and the registered capital of Hongyi Heat and Power changed to 0.15 billion yuan after the increase. Among them, Zhongwei Chemical Fiber increased capital by 95 million yuan, still accounting for 95% of the registered capital of Hongyi Heat and Power; Linhang Xinshi Development and Construction increased capital by 5 million yuan, still accounting for 5% of the registered capital of Hongyi Heat and Power, and Hongyi Heat and Power is still a holding subsidiary of Zhongwei Chemical Fiber.

The increase in capital by the wholly-owned subsidiary of the company, Zhongwei Chemical Fiber, to its holding subsidiary, Hongyi Heat and Power, will further improve the financial structure of Hongyi Heat and Power and promote its steady development.