On January 23, Huamin announced that. According to the agreement with Hongxin New Energy Technology (Yunnan) Co., Ltd. and Jingao (Wuxi) ", Jingao Wuxi will be valued at 1 billion yuan before investment. To increase the capital of Hongxin New Energy by means of debt-to-equity swap with its 200 million yuan creditor's rights to Hongxin New Energy, of which 1.

Jingao Wuxi will hold 16.41% of Hongxin New Energy , ranking the second largest shareholder; The shareholding ratio of Huamin shares will be adjusted from 88.22% to 73.
It is worth noting that in August 2024, Hongxin New Energy introduced Zhengtai New Energy, a strategic investor , with a pre-investment valuation of 1 billion yuan . The planned capital increase is 75 million yuan, and the actual capital increase is 18.75 million yuan . By consensus, the
two sides agreed to adjust the capital increase of Zhengtai New Energy to 18.75 million yuan and subscribe for the new registered capital of Hongxin New Energy 1087.

Financial data show that Hongxin New Energy achieved a total operating income of 840 million yuan in 2024. 2.
By the end of 2024, the net assets of Hongxin New Energy were only 6849. Specifically, the total assets of Hongxin New Energy were 2.645 billion yuan. The total liabilities are 2.576 billion yuan, and the asset-liability ratio is as high as 9.72
billion yuan. After the completion of the debt-to-equity swap, the asset-liability ratio of Hongxin New Energy will be greatly reduced.
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