Shenma intends to increase its capital in Adian by 214 million yuan

On December 9, Shenma Co.
, Ltd.
announced that Henan Shenma Adian Chemical Co.
, Ltd.
(hereinafter referred to as Adian Company), a wholly-owned subsidiary of the company, has a registered capital of 300 million yuan and is responsible for the construction of a 50,000-ton/year adiponitrile project
.

Adian Company is located in Pingdingshan Nylon New Material Industry Cluster Zone, Henan Province, and is fully invested
by Shenma Shares.
With a total investment of 1.
19 billion yuan and a construction period of two years, the project adopts the current international advanced technology of direct hydrocyanation synthesis of adionitrile by butadiene, which has the advantages of
low investment, low energy consumption, low pollution and high product quality.

It is reported that Adian has been approved by the China Development Bank for a low-interest loan of 700 million yuan for the construction of the project, and has withdrawn 430 million yuan
according to the progress of the project construction.
According to the announcement, according to the capital allocation ratio required by the loan contract between Adian and China Development Bank, the capital of Adian Company needs to reach 514 million yuan before the project loan can be fully used
.
In order to enhance the capital strength of Adian, meet the loan requirements of China Development Bank, and ensure the construction capital needs of the adiponitrile project, Shenma intends to increase the capital of Adian by 214 million yuan
in cash.