Grinm Advanced Materials to issue A-shares to controlling shareholder to repay debt

Grinm Advanced Materials plans a private placement of 45,375,887 A-shares to its controlling shareholder, China GRINM, to raise up to 319,900,007.18 yuan. The proceeds will be used to repay special government-allocated debts. The issuance price is set at 7.05 yuan per share, adjusted for a 2024 cash dividend.

The issuance received board and shareholder approval, and is subject to regulatory clearance from the Shanghai Stock Exchange and the China Securities Regulatory Commission. China GRINM has committed to a 36-month lock-up period for the newly acquired shares. This strategic move aims to optimize the company's capital structure and reduce financial leverage.

The company's asset-liability ratio was 34.28% as of June 30, 2025. This capital injection is expected to support the company's financial stability amid declining revenues, which fell from 1,525,394.52 thousand yuan in 2022 to 409,560.26 thousand yuan in the first half of 2025, and a net loss of 3,260.36 thousand yuan in 2024.