Alto Electronics subsidiary Chuangxiang Digital received a capital increase of 20.1 million yuan

On April 30, Alto Electronics issued an announcement stating that its holding subsidiary planned to introduce strategic investors and implement capital increase and share expansion, and the company simultaneously gave up its preemptive subscription rights.

The subject of this capital increase is Shenzhen Chuangxiang Digital Technology Co., Ltd. (hereinafter referred to as "Chuangxiang Digital"), a secondary holding subsidiary. According to the announcement, Chuangxiang Digital intends to introduce Shenzhen Linghang Industrial Digital Creative Equipment Industry Private Equity Investment Fund Partnership (Limited Partnership) (hereinafter referred to as "Shenzhen Linghang") and Zhuhai Hengqin Jingrong Information Consulting Partnership (Limited Partnership) (hereinafter referred to as "Zhuhai Jingrong") as strategic investors.

The above two investors contributed a total of 20.1 million yuan, of which 1.4393 million yuan was included in the registered capital and 18.6607 million yuan was included in the capital reserve. After the capital increase is completed, the registered capital of Chuangxiang Digital will increase from 21.4815 million yuan to 22.9207 million yuan. This round of capital increase corresponds to a pre-money valuation of RMB 300 million.

Chuangxiang Digital's main business covers digital technology, multimedia application software, image technology development, system integration, exhibition planning and digital content production, etc. It also involves technical services, advertising design and production, and import and export of goods and technology and other related fields.

From the perspective of operating conditions, Chuangxiang Digital achieved an audited operating income of 15.8227 million yuan in 2024, a total profit of -6.1214 million yuan, and a net profit of -4.6043 million yuan; in 2025, it achieved operating income of 22.4033 million yuan, a total profit of -6.5949 million yuan, and a net profit of -5.1796 million yuan.

In terms of equity structure, after the completion of this capital increase, the proportion of shares held by Alto Electronics in Chuangxiang Digital through Qianhai Alto will drop from 47.4828% to 44.5012%. Although the shareholding ratio is less than 51%, since the company still appoints board members and core operation and management teams to effectively control its operating decisions, Chuangxiang Digital is still included in the company's consolidated statements, and the scope of consolidation will not change.

Alto Electronics stated that the introduction of strategic investors this time will help optimize the capital structure of Chuangxiang Digital, enhance its financial strength, and promote the accelerated implementation of related new products and businesses. At the same time, by introducing external industrial capital, resource synergies can be further strengthened and its market competitiveness and profitability in relevant segments can be enhanced.

The company also reminds that this capital increase may still be affected by multiple factors such as industrial policy adjustments, market environment changes, and operational management. There will be certain uncertainties in the future, including operational management risks and market risks. The company will continue to follow up on the progress of the matter, fulfill its information disclosure obligations in accordance with laws and regulations, and take corresponding risk prevention and control measures.