South Manganese plans debt reduction, aims for lower gearing
South Manganese Investment Limited (HKEX: 1091) announced a debt reduction proposal following a board meeting on June 4, 2025, aiming to enhance its credit rating, reduce finance costs, and strengthen its capital structure. As of December 31, 2024, the Group's total borrowings stood at HK$3,945.6 million, with net current liabilities of HK$1,659.4 million and a gearing ratio of 167.07%. The proposal prioritizes using available free cash flow to repay borrowings and revitalize assets, targeting a reduction in indebtedness of RMB300 million to RMB500 million per year. The company aims to lower its gearing ratio to 50% or below within five years, while ensuring normal operations. The proposal requires shareholder approval at an upcoming special general meeting (SGM), with a circular and SGM notice expected to be dispatched by June 30, 2025.
This report was generated by FilingReader's AI system from regulatory filings and company disclosures. To request a correction, contact editorial@filingreader.com
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