J.S. Machine's subsidiary Shengcheng Photovoltaic plans to increase its investment in Runyang Co., Ltd. by 150 million yuan
J.S. Machine's wholly-owned subsidiary, Shengcheng Photovoltaic, plans to increase its investment in Runyang Co., Ltd. by 150 million yuan, resulting in a 1.5523% shareholding after the investment. The prerequisite for the investment is that Runyang Co., Ltd. and its related parties must repay Shengcheng Photovoltaic's debt of 20.83 million USD. If the repayment is not made, Shengcheng Photovoltaic can convert the unpaid portion into a debt investment. This move aims to resolve customer arrears, accelerate the recovery of payments, reduce bad debt risks, and optimize the financial structure
According to the Zhitong Finance APP, J.S. Machine (000821.SZ) announced that its wholly-owned subsidiary Suzhou Shengcheng Photovoltaic Equipment Co., Ltd. (referred to as "Shengcheng Photovoltaic") plans to increase its capital in Jiangsu Runyang New Energy Technology Co., Ltd. (referred to as "Runyang Shares") through cash contributions, with a total capital increase of 150 million yuan. After the capital increase is completed, Shengcheng Photovoltaic will hold 8.4375 million shares of the target company, accounting for 1.5523% of the total share capital of the target company after conversion.
It is worth noting that the repayment of a debt of 20.83 million USD owed by subsidiaries or related parties of Runyang Shares to Shengcheng Photovoltaic is a prerequisite and the sole source of funds for this capital increase. If the debtor or its related parties fail to repay the debt as agreed, the investor has the right to change the unpaid portion of the cash contribution directly to a debt contribution to the target company (or its related parties), which will be regarded as the investor having fulfilled its obligation to contribute 150 million yuan, and will not bear any breach of contract or compensation liability to any party or its related parties.
The announcement stated that this external investment aims to quickly resolve customer debt issues, accelerate the company's receivables recovery, reduce the company's bad debt risk, and optimize the company's financial structure
