Metallurgical Corporation of China (01618) introduced Industrial and Commercial Bank of China Investment and Agricultural Bank of China Investment to increase capital for some of its subsidiary companies.

Metallurgical Corporation of China (01618) announced that on September 20, 2024 and September 23, 2024, the company entered into investment agreements with Industrial and Commercial Bank of China (ICBC) and Agricultural Bank of China (ABC) as well as various target companies (China First Metallurgical, MCC 20th Metallurgy, China 19th Metallurgical, China 22nd Metallurgical, Shanghai Pao Ye, and China Best Metallurgy) and their other shareholders. According to the agreements, the investors agreed to inject a total of around RMB 2.713 billion and RMB 2.7 billion respectively in cash to the target companies in accordance with the terms and conditions of each agreement. After the proposed injection of capital, the target companies will continue to operate as subsidiary companies of the corporation, with the corporation retaining actual control over them. The announcement stated that through debt-to-equity swaps, the company is introducing long-term equity capital to be used to repay existing debts of the target companies, primarily bank loans. This debt-to-equity swap will effectively reduce the group's debt ratio and interest-bearing debt size, optimizing the asset-liability structure. After the completion of the debt-to-equity swaps, the group's interest-bearing debt will decrease, positively impacting the group's financial condition and operating results, enhancing the group's core competitiveness and sustainable development capabilities. As of the date of this announcement, the company holds 98.26% of China First Metallurgical, 100% of MCC 20th Metallurgy, 100% of China 19th Metallurgical, 100% of China 22nd Metallurgical, 98.73% of Shanghai Pao Ye, and 100% of China Best Metallurgy. These companies are all subsidiaries of the company. Upon the completion of the transactions under the investment agreements, the company will hold 82.06% of China First Metallurgical, 85.75% of MCC 20th Metallurgy, 78.55% of China 19th Metallurgical, 81.93% of China 22nd Metallurgical, 90.31% of Shanghai Pao Ye, and 78.77% of China Best Metallurgy. These companies will continue to be subsidiaries of the company.