Core Viewpoint - Inner Mongolia Jinmei Chemical Technology Co., Ltd. is addressing financial challenges by issuing A-shares to its controlling shareholder, aiming to improve its financial situation and operational capacity [2][3]. Group 1: Issuance Details - The company is issuing shares at a price of 1.86 CNY per share, with the controlling shareholder Jin Rui Hong Ji planning to subscribe for up to 564.51 million CNY [2]. - The issuance is fully directed towards the controlling shareholder to ensure sufficient fundraising and stabilize control over the company [2][3]. - The average trading price of the company's stock over the 20 trading days prior to the pricing benchmark was 2.33 CNY per share, indicating a significant discount to the market price [3]. Group 2: Financial Performance - The company's revenue for the reporting period was 933.82 million CNY, 861.08 million CNY, 769.92 million CNY, and 473.44 million CNY, with net losses of -292.98 million CNY, -392.96 million CNY, -307.51 million CNY, and -72.81 million CNY respectively [4]. - Despite a 34.89% year-on-year increase in net profit for the first half of 2025, the company remains in a loss position overall [4]. - The company faces challenges with its main product, ethylene glycol, which has a negative gross margin due to low market prices and rising raw material costs [4][5]. Group 3: Future Prospects - The company is working on a 100,000-ton oxalic acid project, which is expected to increase gross profit by 62.07 million CNY upon completion, potentially alleviating ongoing losses [6]. - The project is currently 40% installed and is expected to enter trial operation by the end of the year, with funding primarily from financial institutions and loans from the major shareholder [6]. Group 4: Operational Insights - The company has maintained a stable production operation, although it continues to produce low-margin products to optimize capacity utilization [5][6]. - The sales model primarily involves trading with merchants, which aligns with industry practices, and the company has established long-term relationships with key traders [7]. Group 5: Financial Management - The company has adequately provided for various financial reserves, including bad debt provisions and inventory write-downs, in compliance with accounting standards [8]. - Despite some delays in related party transactions, the company has taken corrective actions to ensure compliance with regulatory requirements [8].