On January 20, Shandong Linglong Tire Co., Ltd. announced that it will use part of the proceeds to increase its capital in Guangxi Linglong Tire Co., Ltd.
  Guangxi Linglong is a wholly-owned subsidiary of Linglong Tire. The capital increase, amounting to 205 million yuan, will be specifically used for the construction of the Liuzhou radial tire production project (phase I renewal).
  It is understood that Guangxi Linglong is an important domestic production base of Linglong Tire. In the first three quarters of 2020, Guangxi Linglong’s operating income was 1.345 billion yuan, and its net profit was 677.991 million yuan. Linglong Tire stated that this capital increase is based on the actual construction needs of related fund-raising projects and is in line with the corporate development strategy and long-term plan.