Big Tree Cloud Holdings Group Completed Strategic Capital Increase to Accelerate Consolidation in China's Personal Care Industry

Rhea-AI Summary

Big Tree Cloud Holdings Group (NASDAQ: DSY) has completed a strategic capital increase with Shenzhen Wengu Development Investment Partnership. The investment includes RMB 30 million to be invested in phases into Guangdong Big Tree Cloud, with RMB 23 million already received between February and April 2025, RMB 1 million due by May 31, 2025, and the remaining RMB 6 million expected in July 2025.

Following this investment and a previous US$600,000 capital increase from Hongkong Ploutos International in December 2024, Guangdong Big Tree Cloud's registered capital increased to RMB 35.77 million. The ownership structure shows DSY HK holding 95.92% equity interest and Shenzhen Wengu holding 4.08%. The funds will be used for supply chain integration, industrial consolidation, and R&D innovation in the personal care sector.

Positive

• Secured RMB 30 million strategic investment from Shenzhen Wengu
• Already received RMB 23 million of the total investment amount
• Maintains strong majority ownership with 95.92% equity stake retained by DSY HK
• Strategic capital will strengthen supply chain integration and R&D capabilities

Negative

• The remaining RMB 7 million investment is still pending and subject to completion
• Relatively small equity dilution of 4.08% to existing shareholders

Insights

Financial Strategy Analyst

Big Tree Cloud secured a RMB 30M strategic investment from Shenzhen Wengu to strengthen its position in China's personal care market.

Big Tree Cloud Holdings Group's latest capital increase represents a structured financing approach with clear strategic intentions. The company has secured RMB 30 million in phased investments from Shenzhen Wengu, with RMB 23 million already received in three tranches between February and April 2025. This punctual execution of the payment schedule indicates strong investor confidence.

What's particularly significant is how this investment reshapes the company's capital structure. Following the US$600,000 (RMB 4.31 million) injection from Hong Kong Ploutos International in December 2024, the registered capital of Guangdong Big Tree Cloud now stands at RMB 35.77 million with a 95.92%/4.08% ownership split between DSY HK and Shenzhen Wengu respectively.

The capital allocation strategy reveals three priorities: supply chain integration, industrial consolidation through M&A, and R&D in new materials. This suggests Big Tree Cloud is pursuing vertical integration while simultaneously expanding horizontally – a dual approach that could create substantial operational synergies if executed properly.

For a company that only completed its Nasdaq listing via a De-SPAC transaction in 2024, this rapid capital formation demonstrates its ability to leverage its public company status to accelerate growth. The emphasis on future M&A activities signals that this investment likely serves as preparatory funding for larger strategic acquisitions in China's fragmented personal care market.

SHENZHEN, China, May 9, 2025 /PRNewswire/ -- On May 6, 2025, Big Tree Cloud Investment Holdings Group (NASDAQ: DSY) (the "Group") successfully completed a new round of strategic capital increase with participation from Shenzhen Wengu Development Investment Partnership (Limited Partnership) ("Shenzhen Wengu"). The proceeds will be allocated to deepen supply chain integration, industrial consolidation, and R&D innovation in new materials within the personal care sector, further solidifying the Group's leadership as China's premier international capital platform in the personal care industry. 

According to the agreement, Shenzhen Wengu shall invest RMB 30 million into Guangdong Big Tree Cloud Investment Holding Group Co., Ltd. ("Guangdong Big Tree Cloud") in phases ("Wengu Investment"). The first three tranches totaling RMB 23 million were received in February, March, and April 2025, and the fourth tranche amounted of RMB 1 million will be received by May 31, 2025.The remaining RMB 6 million investment will be expected to be received in July 2025. Following a previous capital increase of US$ 600,000 (RMB4,314,060) from Hongkong Ploutos International Limited ("DSY HK") in December 2024 and Wengu Investment, the registered capital of Guangdong Big Tree Cloud was increased to RMB35,773,624. Of this amount, DSY HK held a 95.92% equity interest, while Shenzhen Wengu held the remaining 4.08%.  

Chairman Zhu Wenquan emphasized: "This capital increase validates our strategic roadmap and marks a milestone in capital structure optimization. The enhanced financial capacity will fuel future strategic execution and business expansion." 

Established in 2020 and listed on Nasdaq via De-SPAC transaction in 2024 as China's first personal care company on the U.S. exchange, Big Tree Cloud continues to reshape the industry landscape with post-IPO capital advantages and global vision. Moving forward, the Group will intensify M&A activities, collaborate with partners to create long-term value, and pursue high-quality growth in the personal care sector. 

Investor Relations Contact
Ting Yan
Phone: +86 15986815865
Email: yanting@bigtreeclouds.com

 

View original content:https://www.prnewswire.com/news-releases/big-tree-cloud-holdings-group-completed-strategic-capital-increase-to-accelerate-consolidation-in-chinas-personal-care-industry-302451008.html

SOURCE Big Tree Cloud Holdings Limited

FAQ

How much strategic investment did Big Tree Cloud Holdings (DSY) receive in May 2025?

Big Tree Cloud Holdings received a total commitment of RMB 30 million from Shenzhen Wengu, with RMB 23 million already received, RMB 1 million due by May 31, 2025, and RMB 6 million expected in July 2025.

What is the ownership structure of Big Tree Cloud Holdings after the capital increase?

After the capital increase, DSY HK holds 95.92% equity interest in Guangdong Big Tree Cloud, while Shenzhen Wengu holds 4.08%.

What will DSY use the strategic investment funds for?

The funds will be used for supply chain integration, industrial consolidation, and R&D innovation in the personal care sector.

When did Big Tree Cloud Holdings (DSY) get listed on NASDAQ?

Big Tree Cloud was listed on NASDAQ in 2024 through a De-SPAC transaction, becoming China's first personal care company on the U.S. exchange.