Hubei Xingfa Chemicals (SHA:600141) agreed to invest 76.5 million yuan into the establishment of a joint venture with its controlling shareholder and subsidiary, according to a Friday disclosure on the Shanghai bourse.
The venture, Hubei Xingfa Investment, will have a registered capital of 150 million yuan and will engage in equity and venture capital investment.
The Chinese chemical manufacturer will own 51% of the venture's capital.
The controlling shareholder, Yichang Xingfa Group, and subsidiary, Hubei Xingfu Electronic Materials, will each own 24.5% of the venture.
The company's shares fell nearly 2% during the afternoon trade.