Xiamen Tungsten boosts motor unit stake, creates guarantees

Xiamen Tungsten Co., Ltd. announced a non-proportional capital increase of CNY 251,204,081.63 in Xiamen Tungsten Motor Industry Co., Ltd. (Xiamen Tungsten Motor), increasing its stake from 40% to 51%. This makes Xiamen Tungsten Motor a controlling subsidiary, consolidating its financials into Xiamen Tungsten. The capital injection is based on an assessed equity value of CNY 1,119,000,000.00. Fujian Yikong Private Equity Fund Management Co., Ltd., the other shareholder, waived its pre-emptive rights, reducing its stake from 60% to 49%.

This transaction passively creates an external guarantee for Xiamen Tungsten Co., Ltd. Xiamen Tungsten Motor has existing guarantees of CNY 10,0180,000.00 for its subsidiary, Xiamen Shituo Yuneng Technology Co., Ltd.'s financing. After the capital increase, Xiamen Tungsten Motor's existing guarantees for Xiamen Shituo Yuneng will become external guarantees for Xiamen Tungsten. Additionally, Xiamen Tungsten is adjusting its 2025 related-party transaction forecasts, reducing the total by CNY 19,015,000.00 and adding CNY 520,000.00 for new transactions with related parties. Xiamen Tungsten will also continue to use idle raised funds of up to CNY 2,100,000,000.00 for cash management.