Joyson Unit Anhui Joyson Safety Gets RMB1.5 Billion Capital Injection to Cut Debt
Joyson Electronics announced that Xingyin Financial Asset Investment and Zhongyou Financial Asset Investment will inject RMB500 million and RMB1 billion respectively into its controlling subsidiary Anhui Joyson Automotive Safety Systems. After the injection, the two investors will hold about 2.1459% and 4.2918% stakes, while Anhui Joyson Safety remains a controlled subsidiary. The funds will repay shareholder loans and bank debt, helping lower the group's debt-to-asset ratio below 60%.
Joyson Electronics announced that Xingyin Financial Asset Investment Co. , Ltd. and Zhongyou Financial Asset Investment Co. plan to inject RMB500 million and RMB1 billion, respectively, into its controlling subsidiary Anhui Joyson Automotive Safety Systems Holding Co. Upon completion of the capital increase, Xingyin Investment and Zhongyou Investment will hold approximately 2.1459% and 4.2918% of Anhui Joyson Safety, respectively, and Anhui Joyson Safety will remain a controlled subsidiary of the company.
The proceeds from the capital increase will mainly be used to repay shareholder loans provided by the company to Anhui Joyson Safety, after which the company will repay its own existing bank borrowings, with the aim of reducing overall debt and lowering interest expenses. This move is expected to optimise the capital structure of Anhui Joyson Safety and the group's overall debt structure, supporting the company's goal of keeping its total debt-to-asset ratio below 60%.