Shareholders increase the company's capital through debt-to-equity swap.

Legal analysis: Yes. Capital increase of the company: the act of increasing the registered capital of the company in accordance with the law in order to expand its business scale, broaden its business and improve its reputation. Debt-to-equity swap refers to the conversion of the creditor's right to a limited liability company or joint stock limited company established in China into the company's equity, so as to increase the company's registered capital.

Legal basis: Article 178 of the Company Law of People's Republic of China (PRC). When a limited liability company increases its registered capital, the contribution of the newly-increased capital subscribed by shareholders shall be implemented in accordance with the relevant provisions of this Law on the establishment of a limited liability company. When a joint stock limited company issues new shares to increase its registered capital, shareholders shall subscribe for new shares in accordance with the relevant provisions of this Law on the establishment of a joint stock limited company and the payment of shares.