Zhejiang Jinggong lands $100m carbon fiber production line contract

Zhejiang Jinggong Science & Technology announced it has secured a RMB 729m contract with Hubei Yuchuang Carbon Fiber Co. for two 5,000-ton high-performance PAN-based carbon fiber precursor production lines and one 3,000-ton carbon fiber production line. The contract, won through a public bidding process, represents 42.16% of Zhejiang Jinggong's 2024 audited operating income and is expected to positively impact its future operating performance.

This transaction is deemed a related party transaction because Mr. Ni Jianxun, vice president of Zhejiang Jinggong, serves as a director at Hubei Yuchuang. The deal was reviewed and approved by Zhejiang Jinggong's independent directors and passed by the ninth board of directors at its thirteenth meeting on December 6, 2025, with all nine directors voting in favor. The transaction requires shareholder approval before implementation.

Cathay Haitong Securities, as the sponsor, confirmed that the related party transaction adheres to legal and regulatory requirements, including public bidding for pricing, and serves the company's operational needs without harming the interests of the company or its non-related shareholders. Hubei Yuchuang, established on November 13, 2025, with a registered capital of RMB 30,000万元, is a participating company of Zhejiang Jinggong.