【Fu Sheng Applied】Announcement of Board of Directors' Resolution to Capital Reduction to Offset Losses for Subsidiaries Gainsmart Group Ltd. and FS North America, Inc.
Fu Sheng Applied (FSG) announced that its board of directors resolved to carry out capital reductions for its subsidiaries Gainsmart Group Ltd. and FS North America, Inc. to offset accumulated losses. This action is primarily due to the liquidation of FS-Precision Tech. Co., LLC (PT), a grandchild company that was the main operating entity, after its land and plant lease expired.
📋 Article Processing Timeline
- 📰 Published: May 7, 2026 at 09:00
- 🔍 Collected: May 8, 2026 at 08:00 (23h 0m after Published)
- 🤖 AI Analyzed: May 8, 2026 at 08:19 (19 min after Collected)
1. **Date of Board Resolution:** May 7, 2026 (115/05/07)
2. **Reason for Capital Reduction:**
* Fu Sheng Applied (the Company) holds 100% of Gainsmart Group Ltd. ("Gainsmart"). Gainsmart, through its 100% owned grandchild company FS North America, Inc. ("FS-NA"), further holds 100% of its great-grandchild company FS-Precision Tech. Co., LLC ("PT"). Both Gainsmart and FS-NA are holding companies, with PT being the actual operating entity.
* Due to the expiration of PT's land and plant lease, the Company's board of directors resolved on January 26, 2024 (113/01/26) to dissolve and liquidate PT. The liquidation and cancellation were completed on December 26, 2025 (114/12/26). Therefore, a capital reduction is now proposed for Gainsmart and FS-NA to offset accumulated losses.
* The capital reduction amounts are USD 23.3 million for Gainsmart and USD 22.84 million for FS-NA.
* After the capital reduction, Gainsmart's paid-in capital will be USD 2.3 million, and FS-NA's capital surplus will be USD 460,000.
3. **Amount of Capital Reduction:** Gainsmart: USD 23.3 million
4. **Shares Eliminated:** Gainsmart: 23.3 million shares
5. **Capital Reduction Ratio:** Gainsmart: 91.01%
6. **Capital After Reduction:** Gainsmart: USD 2.3 million
7. **Scheduled Date of Shareholders' Meeting:** Not applicable
8. **Expected Number of Listed Common Shares After Capital Reduction:** Not applicable
9. **Ratio of Expected Listed Common Shares After Capital Reduction to Total Outstanding Common Shares (Listed Common Shares After Reduction / Total Outstanding Common Shares After Reduction):** Not applicable
10. **Measures for Low Stock Liquidity if the Number of Listed Common Shares After Capital Reduction is Less Than 60 Million Shares and Less Than 25% for the Above Two Items:** Not applicable
11. **Effective Date of Capital Reduction:** Not applicable
12. **Other Matters to be Stated:** The Chairman is authorized to handle all subsequent related procedures and operations.
2. **Reason for Capital Reduction:**
* Fu Sheng Applied (the Company) holds 100% of Gainsmart Group Ltd. ("Gainsmart"). Gainsmart, through its 100% owned grandchild company FS North America, Inc. ("FS-NA"), further holds 100% of its great-grandchild company FS-Precision Tech. Co., LLC ("PT"). Both Gainsmart and FS-NA are holding companies, with PT being the actual operating entity.
* Due to the expiration of PT's land and plant lease, the Company's board of directors resolved on January 26, 2024 (113/01/26) to dissolve and liquidate PT. The liquidation and cancellation were completed on December 26, 2025 (114/12/26). Therefore, a capital reduction is now proposed for Gainsmart and FS-NA to offset accumulated losses.
* The capital reduction amounts are USD 23.3 million for Gainsmart and USD 22.84 million for FS-NA.
* After the capital reduction, Gainsmart's paid-in capital will be USD 2.3 million, and FS-NA's capital surplus will be USD 460,000.
3. **Amount of Capital Reduction:** Gainsmart: USD 23.3 million
4. **Shares Eliminated:** Gainsmart: 23.3 million shares
5. **Capital Reduction Ratio:** Gainsmart: 91.01%
6. **Capital After Reduction:** Gainsmart: USD 2.3 million
7. **Scheduled Date of Shareholders' Meeting:** Not applicable
8. **Expected Number of Listed Common Shares After Capital Reduction:** Not applicable
9. **Ratio of Expected Listed Common Shares After Capital Reduction to Total Outstanding Common Shares (Listed Common Shares After Reduction / Total Outstanding Common Shares After Reduction):** Not applicable
10. **Measures for Low Stock Liquidity if the Number of Listed Common Shares After Capital Reduction is Less Than 60 Million Shares and Less Than 25% for the Above Two Items:** Not applicable
11. **Effective Date of Capital Reduction:** Not applicable
12. **Other Matters to be Stated:** The Chairman is authorized to handle all subsequent related procedures and operations.