CITIC Heavy Industries to use factoring for cash flow, reduce risk

CITIC Heavy Industries Co., Ltd. and its controlled subsidiaries plan to engage in non-recourse accounts receivable factoring with commercial banks and other financial institutions, with a cumulative amount not exceeding 400 million yuan. This initiative aims to accelerate capital turnover, improve capital utilization efficiency, and optimize the company's asset structure while reducing accounts receivable risk.

The approved factoring limit will be valid for 12 months from board approval. Specific durations for each transaction will follow individual factoring contracts, with financing rates determined through negotiations reflecting market fluctuations.

The board of directors has authorized the company's general manager to make specific operational decisions within the approved limit and sign relevant contractual documents, including selecting cooperative institutions and determining specific factoring amounts. The company expects this move to positively impact its daily operations, financial condition, and overall performance without harming shareholders' interests. The transaction does not constitute a connected transaction or a major asset restructuring and does not require shareholder approval.