HMT shareholder secures loan for stake increase, delays purchase

Dongyang Huasheng, the controlling shareholder of HMT (Xiamen) New Technical Materials, has received a commitment letter from China CITIC Bank Xiamen Branch for a special loan of up to RMB90 million, with a term not exceeding 36 months, to increase its shareholding in HMT. This loan supplements Dongyang Huasheng’s own funds for the share increase. The initial plan, announced on May 7, 2025, aimed to increase shareholding by RMB100 million to RMB200 million within six months.

However, as of the latest announcement on September 6, 2025, Dongyang Huasheng has not yet implemented the increase. The delay is primarily due to HMT’s ongoing plan to issue shares for asset acquisition, which paused trading between May 21 and June 5, 2025, and subsequent due diligence. To avoid potential insider trading, Dongyang Huasheng will proceed with the share increase after the full disclosure of the asset acquisition and related plans.

HMT has also scheduled its Second Extraordinary General Meeting for September 15, 2025. Key proposals include the abolition of the Supervisory Board, the adoption of a revised "Articles of Association," the repeal of the "Rules of Procedure for the Supervisory Board," and revisions to various internal governance documents.