The company’s issued and paid-up share capital will be reduced by $87.1 million through the cancellation of $4.98 on each of the shares. This will take place on the effective date of the group’s proposed capital reorganisation.
Under the company’s proposed capital reorganisation, each issued share with a par value of $5.00 is set to be treated as one fully paid share with a par value of two cents as at the proposed capital reorganisation effective date.
Additionally, the company adds that its share premium account is expected to be reduced from $53.6 million to zero with the cancellation of the sum standing to the credit of the share premium account as at March 14.
As such, the company will have $140.7 million (comprising the credit from the capital reduction and share premium reduction) in its contributed surplus account. This will be used to set off against any of the company’s accumulated losses in full.
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Had the proposed capital reorganisation been completed on Dec 31, 2023, there would have been no changes to Fuxing China’s net tangible assets (NTA) of RMB573.7 million ($105.2 million) or NTA per share of RMB33.35.
Meanwhile, had the proposed capital reorganisation been completed on Jan 1, 2023, Fuxing China’s FY2023 loss would have remained unchanged at RMB7.6 million, or a loss of RMB440 per share.
Shares in Fuxing China closed flat at 26 cents on Sept 26.
