Huayou Cobalt closes convertible bond projects, reallocates surplus funds to working capital

Zhejiang Huayou Cobalt Co., Ltd. announced the conclusion of its public offering of convertible corporate bonds' investment projects, with 265.96 million yuan in surplus funds. These funds will be permanently allocated to supplement the company's working capital for daily production and operations. The projects, which included the production of high-nickel ternary cathode materials, ternary precursor materials, battery-grade nickel sulfate, and high-purity electro-nickel, all reached their anticipated operational status by October 22, 2025.

The total committed capital for these projects was 7.6 billion yuan, with a net raised amount of 7.55 billion yuan as of March 2, 2022. The surplus funds represent 3.52% of the net raised amount, including interest income. The company’s board of directors and audit committee approved this reallocation, noting that it enhances the efficiency of fund utilization and reduces financial costs without negatively impacting operations.

Given that the surplus amount is less than 10% of the net raised capital, this decision did not require shareholder approval, aligning with regulatory guidelines. The company's lead underwriter affirmed that the necessary decision-making processes were followed and that the action complies with relevant regulations, causing no harm to shareholder interests.