According to Zhitong Finance App News, Joyson Electronics (00699) announced that on August 13, 2026, Anhui Joyson Auto Safety Systems Holdings Co., Ltd. (Anhui Junsheng, a subsidiary of the company), the company, Societe Generale Investment and China Post Investment signed a capital increase agreement between Societe Generale and China Post Investment. Based on this, Societe Generale Investment and China Post Investment agreed to subscribe to Anhui Junsheng with a cash subscription of RMB 500 million and RMB 1 billion respectively.
Prior to the signing of the capital increase agreement between Industrial Bank and China Post, Anhui Junsheng had introduced Agricultural Bank Investment, Jianxin Investment, and CMB Investment as strategic investors, respectively. According to the Agricultural Bank capital increase agreement, Agricultural Bank Investment subscribed Anhui Junsheng's additional registered capital of RMB 6081.2037.31 million in cash; according to the CCB capital increase agreement, CCB Investment used RMB 500 million in cash to subscribe Anhui Junsheng's additional registered capital of RMB 300.6018.65 million; according to the CMB capital increase agreement, CMB Investment subscribed to Anhui Junsheng's additional registered capital of RMB 300.6018.65 million in cash.
The board of directors believes that the capital increase of Agricultural Bank, the capital increase of Jianxin, the capital increase of CMB, and the capital increase of Industrial Bank and China Post are all a series of financing arrangements around the Anhui Junsheng Auto Safety Business Platform. The pricing of the capital increase arrangements is based on the Anhui Junsheng valuation and related pricing basis disclosed in the announcement of the acquisition of shares in Anhui Junsheng, including factors such as valuation analysis reports issued by independent valuers using market law, the past business situation and future development prospects of Anhui Junsheng, and the characteristics, market position and actual business conditions of the industry in which Anhui Junsheng is located, and determined after fair consultation with the relevant parties.
Specifically, according to the announcement of the acquisition of shares in Anhui Junsheng, the market value range of Anhui Junsheng's 100% shareholders' equity on March 31, 2025 was RMB 19.671 billion to RMB 22.586 billion; Agricultural Bank invested in the pricing of increasing the capital to Anhui Junsheng by RMB 1 billion in January 2026, and also referred to such valuations. The board of directors believes that the capital increase of Jianxin, the capital increase of CMB, and the capital increase of Industrial Bank and China Post continue the pricing logic and commercial basis of the agricultural bank capital increase, which will help maintain the continuity and pricing consistency of Anhui Junsheng's financing arrangements.
From a commercial perspective, introducing external investors will help Anhui Junsheng to further broaden financing channels, optimize shareholder structure and capital structure, and enhance Anhui Junsheng's capital strength as the Group's main platform for automobile safety business. According to the Agricultural Bank capital increase agreement, the CMB capital increase agreement, the CMB capital increase agreement, and the China Post capital increase agreement, the funds obtained from the capital increase will be used to repay shareholder loans provided by the Company to Anhui Junsheng, and the Company will repay existing bank loans; the board of directors believes that this arrangement will help reduce the Group's overall debt level and financial costs, improve the balance and liability structure, and help the Group achieve the goal of a balance ratio of less than 60% as soon as possible.
After the capital increase of Xingyin and China Post is completed, the Company's equity in Anhui Junsheng will be reduced from 66.3491% to 62.0777%. Anhui Junsheng will remain a subsidiary of the Company. Its performance will continue to be consolidated into the Group's financial statements, and the Company will not lose control of Anhui Junsheng due to capital increase matters. Therefore, the increase in capital is considered a sale and recorded as an equity transaction, and will not cause the Group's profit or loss to confirm any profit or loss.