Announcement on Financial Assistance to Subsidiary Joint Venture for 2026
The company and all members of the board guarantee that the content of this announcement is true, accurate, and complete, with no false records, misleading statements, or significant omissions.
Important Matters Reminder:
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Nanjing Jinpu Yingsa Synthetic Rubber Co., Ltd. (hereinafter referred to as "Jinpu Yingsa") is a joint venture in which Jinpu Titanium Industry Co., Ltd. (hereinafter referred to as "Jinpu Titanium" or "the Company") holds a 50% stake through its wholly-owned subsidiary, Nanjing Jinpu Huandong New Materials Co., Ltd. (hereinafter referred to as "Huandong New Materials"). The company intends to provide financial assistance not exceeding 59.92 million RMB to Jinpu Yingsa for a period of one year at an annual interest rate of 7%.
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Review Procedures: This was approved by the sixth meeting of the ninth board of directors, the first meeting of the audit committee for 2026, and the third special meeting of independent directors of the ninth board.
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Special Risk Reminder: To minimize risks, Jinpu Titanium will sign a formal loan agreement with Jinpu Yingsa and closely monitor its operational and financial status. The risks associated with this financial assistance are controllable.
I. Overview of Financial Assistance
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Reasons for Providing Financial Assistance The company plans to provide financial assistance not exceeding 59.92 million RMB to Jinpu Yingsa, primarily to meet its working capital needs for daily production and operations. The other 50% shareholder, DYNASOL CHINA S.A.DE.C.V (hereinafter referred to as "foreign shareholder"), has designated its affiliates to provide financial assistance and joint liability guarantees to Jinpu Yingsa, totaling no less than that provided by Jinpu Titanium. This financial assistance is inherited from the original shareholders' obligations when Jinpu Titanium acquired equity in Jinpu Yingsa through asset swaps in 2023 and does not increase Jinpu Titanium's cash outflow. The financial assistance amount was 79.25 million RMB at the time of the swap, which has now been reduced by 19.33 million RMB, leaving a remaining amount of 59.92 million RMB. The company will continue to reduce this financial assistance without affecting Jinpu Yingsa's normal business operations and fund usage. As of the announcement date, the total financial assistance and guarantees provided by Jinpu Titanium to Jinpu Yingsa amount to 96.92 million RMB, which is less than the 113.92 million RMB provided by the foreign shareholder. This financial assistance will not affect the company's normal business operations and fund usage and does not fall under the prohibitions outlined in the Shenzhen Stock Exchange's listing rules.
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Basic Information on Financial Assistance
- Financial Assistance Recipient: Nanjing Jinpu Yingsa Synthetic Rubber Co., Ltd.
- Financial Assistance Amount: Up to 59.92 million RMB
- Financial Assistance Duration: One year from the effective date of the agreement
- Assistance Method: Interest-bearing loan, disbursed according to Jinpu Yingsa's actual operational needs
- Main Use of Funds: Primarily for maintaining Jinpu Yingsa's working capital needs for daily production and operations
- Cost of Funds: Calculated at an annual interest rate of 7%
The financial assistance contract has not yet been signed, and specific content will be subject to the actual signing of the agreement.