Increase capital by 1 billion yuan! Shenma Nylon Chemical implements market-oriented debt-for-equity swap

On December 12, Shenma Industrial Co., Ltd. (hereinafter referred to as “Shenma Co., Ltd.”) announced that its holding subsidiary Henan Shenma Nylon Chemical Co., Ltd. (hereinafter referred to as “Nylon Chemical”) plans to introduce CCB Financial Asset Investment Co., Ltd. (hereinafter referred to as “CCB Investment”) and Bank of China Financial Asset Investment Co., Ltd. (hereinafter referred to as “BOC Asset”) made cash capital increases as investors. The capital increase amount was RMB 500 million each, and the total capital increase was RMB 1 billion. In RMB, the capital increase funds are used to repay the financial liabilities of the target company or Shenma Co., Ltd., mainly bank loans, within the scope of the consolidated statements of Shenma Co., Ltd. Calculated based on the net asset appraisal value of the target company on the valuation base date, after this capital increase, CCB Financial Assets Investment Co., Ltd. , Bank of China Financial Assets Investment Co., Ltd. will each hold 5.49% of the equity of the target company.

After this capital increase, Shenma Co., Ltd. holds 61.79% of the shares and remains the largest shareholder of Nylon Chemical Company.

Shenma Co., Ltd. said that the company plans to introduce qualified investors to invest at the target company level, implement market-oriented debt-for-equity swaps, introduce long-term equity funds, and use the funds specifically to repay interest-bearing liabilities. This capital increase transaction will help enhance the company’s capital strength, reduce the asset-liability ratio and the scale of interest-bearing liabilities, and optimize the financial structure. This capital increase is the company’s implementation of a market-oriented debt-for-equity swap, an important measure to implement high-quality development requirements and reduce the asset-liability ratio.

Shenma Co., Ltd. is a production and sales industrial enterprise, spanning the two major industries of chemical industry and chemical fiber. Through the implementation of an integration strategy, it has formed leading products such as nylon 66 salt and nylon 66 salt intermediate products, nylon 66 slices, industrial yarns, and cord fabrics. As the pillar, a new industrial pattern relies on raw and auxiliary materials and related products. The main products of Shenma Co., Ltd. are industrial yarn, cord fabric, nylon 66 chips, adipic acid, bisphenol A, and PC. Other products include cyclohexane, aramid fiber, flame-retardant fiber, liquid-colored yarn, nylon 6 civilian yarn, etc. .