HAINAN RUBBER GROUP: Affected by Typhoon "Swordfish," it is expected that the annual dry rubber production will decrease by approximately 2,500 tons
HAINAN RUBBER GROUP announced that due to the impact of Typhoon "Swordfish," it is expected to reduce dry rubber production by approximately 2,500 tons for the whole year. The typhoon caused losses to the rubber and biological assets of some subsidiaries within Hainan Province, with approximately 2,800 acres of rubber plantations being scrapped and about 360,000 rubber and non-rubber biological assets being damaged. Major properties have been insured, and the insurance company will provide compensation, which is expected to mitigate the losses. The insurance company has already advanced part of the compensation amounting to 5 million yuan
According to the announcement from HAINAN RUBBER GROUP (601118.SH) regarding the impact of Typhoon "Swordfish," the company has suffered varying degrees of damage to its biological assets such as rubber and fixed assets including supporting production facilities at some subsidiaries in Hainan Province due to strong winds and heavy rain brought by the typhoon, with no casualties reported. Preliminary statistics indicate that approximately 0.28 million mu of rubber plantation has been rendered unusable, and about 360,000 rubber and non-rubber biological assets (including rubber trees ready for tapping and small seedlings) have been damaged. It is estimated that the annual dry rubber production will decrease by about 25,000 tons.
The main damaged properties are insured, and the insurance company will compensate within the scope of the insurance agreement and the amount of compensation, which is expected to mitigate the impact of the disaster on the company. The company has reported the preliminary damage situation to the insurance company, which is actively working on the insurance claims and has already advanced 5 million yuan in insurance compensation for the rubber tree cost
