(Yicai Global) Sept. 21 -- Baofeng Group Co. [SHE:300431], an online audio and video entertainment provider, will make a CNY400 million (USD61.5 million) capital increase in its Shenzhen-based internet television subsidiary Baofeng Tongshuai Technology Co. through Rudong Xinhao Industry Investment Fund Management Center Ltd., the company said in a press briefing on Sept. 21.
Preliminary estimates suggest that Baofeng Tongshuai is worth CNY3 billion (USD461 million), though appraisal work is yet to be completed.
Baofeng Group holds a 27.34 percent stake in Baofeng Tongshuai, which is mainly engaged in the sale of internet-enabled TV sets. The subsidiary achieved revenues of CNY561 million in the first half of this year but reported a net loss of CNY129 million (USD19.8 million).
Rudong Xinhao was founded in September 2017 and has registered capital of CNY200 million. The deal would mark the company's first case of outward investment.
Trading in shares of Baofeng Group is currently suspended due to the material assets reorganization.