JCT(SH:603657) Zheng Quan Zhi Xing·2025-09-05 11:12Core Viewpoint - The company plans to sign a convertible debt investment agreement with Beijing Shunzao Technology Co., Ltd., aiming to provide financial support of 50 million RMB, which can be converted into equity under certain conditions, thereby securing future investment opportunities and enhancing cooperation [1][5][7]. Group 1: Agreement Details - The company intends to provide a one-time financial support of 50 million RMB to Beijing Shunzao, with a borrowing period of two years and an interest rate of 2.75% [5][14]. - If the company does not convert the debt into equity by the end of the borrowing period, Beijing Shunzao is obligated to repay the principal and interest [5][14]. - The agreement has been approved by the company's board and will be submitted for shareholder approval [6][20]. Group 2: Strategic Considerations - The primary purpose of the investment agreement is to capture development opportunities and lock in the investment valuation of Beijing Shunzao, which is a major customer of the company [2][18]. - The company aims to reduce future investment risks and enhance resource sharing and business opportunities through this agreement [2][18]. - The financial support is not expected to affect the company's normal business operations or fund usage [18][20]. Group 3: Financial and Operational Context - Beijing Shunzao has shown significant growth, with total assets of approximately 73.41 million RMB and total liabilities of about 70.90 million RMB as of June 30, 2025, indicating a high debt ratio of 96.58% [11][12]. - The company has a long-term cooperative relationship with Beijing Shunzao, primarily in the development and sales of cleaning appliances [7][12]. - The agreement is structured to allow for a potential equity conversion, contingent upon the fulfillment of specific conditions, which will be evaluated carefully by the company [19][20].