DMEGC Magnetics plans 2026 finances, subsidiary support

Hengdian Group DMEGC Magnetics announced plans for 2026, seeking credit facilities up to 15 bn yuan from financial institutions. This includes loans, acceptance bills, letters of credit, guarantees, and other related services. Concurrently, the company forecasts related party transactions for 2026 to total 518.5m yuan, covering product procurement, sales, fuel, heat and power, processing, catering, engineering, and leasing.

Additionally, the company will provide new guarantees for its consolidated subsidiaries, totaling 1.83 bn yuan. This includes 430m yuan for subsidiaries with asset-liability ratios below 70% and 1.4 bn yuan for those above 70%, valid until the 2026 annual general meeting. The company also intends to engage in foreign exchange hedging operations with a maximum outstanding balance of $500m, covering various products like forward foreign exchange, swaps, and options.

A key adjustment involves reducing the interest rate on financial assistance to its controlled subsidiaries, DMEGC INVESTMENT PTE.LTD. and DM INTERNATIONAL INVESTMENT PTE. LTD., to 3% starting in 2025. This move, aimed at easing the financial burden on these subsidiaries, is consistent with market interest rates. The company will hold a second interim general meeting on December 11, 2025, to approve these proposals.