Yinyi's European subsidiary cuts debt, expects significant gain

Yinyi Technology’s European subsidiary, Punch Powertrain N.V., has entered into a new "Settlement Agreement" with five financial institutions to restructure its debt. The company plans to pay €3,300m (excluding Nanjing Bank) to complete the debt restructuring. This new agreement supersedes the original, which automatically terminated on June 30, 2025, due to unpaid amounts.

Following an initial payment and a recent €600m payment, the outstanding syndicate loan balance has immediately decreased to €7,000m. A remaining payment of €700.97m is due by December 15, 2025. According to internal financial projections, these payments are expected to generate a debt restructuring gain of €12,222.74m (after tax). This gain is subject to 2025 annual audit results.

The debt restructuring is expected to alleviate financial pressure, optimize the company's asset-liability structure, and enhance operational efficiency. It is anticipated to positively impact Yinyi's future financial performance and operational capabilities, without harming the interests of the company or its shareholders. The company cautions investors that the transaction involves changes in liabilities and financial expenses, which are expected to affect the company's 2025 performance.