Zhongjian Tech subsidiary expands capital, welcomes new shareholders

Zhejiang Zhongjian Technology Co., Ltd. (Zhongjian Tech) announced its subsidiary, Shanghai Huazhijian Robotics Co., Ltd., will increase its registered capital from 10 million yuan to 20 million yuan. Zhongjian Tech will subscribe to 0.2 million yuan of the new capital.

Mr. Bao Jialong, a director and deputy general manager of Zhongjian Tech, will invest 5.8 million yuan. Additionally, Shanghai Longjian, an employee stock ownership platform, will contribute 4 million yuan.

Following the capital increase, Zhongjian Tech’s stake in Shanghai Huazhijian will decrease from 100% to 51%. Mr. Bao Jialong will hold 29% and Shanghai Longjian will hold 20%. This constitutes a connected transaction due to Mr. Bao Jialong's role. The pricing for the capital increase was determined through negotiations at 1 yuan per registered capital unit, based on an asset valuation report.

The transaction, approved by the board on December 4, 2025, aims to optimize Shanghai Huazhijian's equity structure, establish long-term incentive mechanisms, and improve management efficiency. The capital increase is not expected to change the company's consolidated financial statement scope or adversely affect its financial performance.