2. The board of directors shall formulate a plan for capital increase and share expansion;
3. The shareholders' meeting or the board of directors shall make a resolution on the capital increase and share expansion plan;
4. Perform the approval procedures, and the company will report the capital increase and share expansion to the group company and the superior SASAC for approval;
5. Audit of asset appraisal: the property owner entrusts an asset appraisal institution with corresponding qualifications to conduct appraisal. The evaluation report shall be approved or filed according to the prescribed procedures.
Legal basis: Article 168 of the Company Law of People's Republic of China (PRC) is used to make up the company's losses, expand the company's production and operation or increase the company's capital. However, the capital reserve fund shall not be used to make up the company's losses.
When the statutory reserve fund is converted into capital, the retained reserve fund shall not be less than 25% of the registered capital of the company before the transfer.