Sichuan Hongda completes targeted share issuance to resolve debt

Sichuan Hongda (SSE:600331) has successfully completed its targeted share issuance to Shudao Investment Group, its controlling shareholder, issuing 609.6 million shares at a price of CNY 4.68 per share, raising a total of CNY 2.85 billion. The move aims to optimize Sichuan Hongda's capital structure and improve its financial stability by resolving significant debt burdens. The proceeds will be used to repay CNY 423.4 million in principal owed to Jinding Zinc Industry from a contract dispute, CNY 223 million in deferred payments, and to cover existing bank loans of CNY 680.6 million, lowering the company's overall gearing from 82.87%. Shudao has committed to a 36-month lock-up period for the newly issued shares, affirming its long-term commitment to Sichuan Hongda's stability and growth. Shudao now controls 47.17% of the company.