Joyson Electronics Subsidiary Secures RMB 1.5 Billion Investment to Optimize Debt Structure

On August 13, Joyson Electronics announced that Xingyin Financial Asset Investment Co., Ltd. and Zhongyou Financial Asset Investment Co., Ltd. plan to inject RMB 500 million and RMB 1 billion, respectively, into its majority-owned subsidiary Anhui Joyson Automotive Safety Systems Holding Co., Ltd., totaling RMB 1.5 billion in new capital. Following the capital increase, Xingyin Investment and Zhongyou Investment will hold approximately 2.1459% and 4.2918% equity interests, respectively, in Anhui Joyson Safety, which will remain a majority-owned subsidiary of Joyson Electronics. The proceeds from this capital injection will be used to repay shareholder loans previously provided by Joyson Electronics to Anhui Joyson Safety. Joyson Electronics will then use these funds to repay its existing bank loans, thereby reducing its overall debt level and interest expenses, optimizing the debt structures of both Anhui Joyson Safety and Joyson Electronics, and advancing Joyson Electronics’ goal of achieving a consolidated asset-liability ratio below 60%.