EnergyTrend learned that AIKO issued an announcement on June 25, disclosing that its wholly-owned subsidiary Zhejiang AIKO Solar Technology Co., Ltd. plans to make a capital increase to its fully-owned sub-subsidiary Chuzhou AIKO Solar Technology Co., Ltd. with internal funds, with the capital injection amount reaching RMB 800 million.
According to the announcement, Chuzhou AIKO had a registered capital of RMB 522 million prior to this capital increase. Upon completion of industrial and commercial registration formalities for the capital injection, its registered capital will rise to RMB 1.322 billion. The capital increase will be carried out by Zhejiang AIKO, and the shareholding structure of Chuzhou AIKO will remain unchanged, being 100% owned by Zhejiang AIKO both before and after the capital injection.
The capital increase is mainly intended to replenish Chuzhou AIKO’s capital base, optimize its asset-liability structure, lower its debt level and strengthen the risk resistance capacity of the Chuzhou manufacturing base. After the funds are in place, they will cover capital demands for production line construction, raw material procurement and daily operational turnover at the Chuzhou base. Meanwhile, the capital injection will improve Chuzhou AIKO’s credit standing and facilitate subsequent bank financing and industrial cooperation initiatives.
Chuzhou AIKO serves as the production and operation entity for the company’s N-type ABC solar cells. This capital increase aligns with the company’s existing capacity layout roadmap to support stable operation of the manufacturing lines at the base.
In terms of funding sources, the full RMB 800 million capital increase will be sourced from Zhejiang AIKO’s self-generated operating funds, with no use of funds raised by the listed company. The announcement noted that the capital injection will not exert any material adverse impact on the daily operations, cash flow and overall financial position of the listed company and Zhejiang AIKO.
This capital increase merely constitutes an internal capital structure adjustment within the group, with no changes to the scope of consolidated financial statements of the listed firm.
Source：EnergyTrend