JOYSON ELEC (00699) announced that, based on confidence in the future sustainable and stable development of the company's automotive safety business and recognition of its long-term value, ABC Investment recently signed an "Investment Agreement on Anhui Joyson Automotive Safety Systems Holdings Co., Ltd." with the company and its controlled subsidiary, Anhui Joyson Safety. ABC Investment plans to invest RMB 1 billion in Anhui Joyson Safety.

Following the completion of this transaction, ABC Investment will hold approximately 4.81% of the equity in Anhui Joyson Safety, which will remain a controlled subsidiary of the company. By introducing strategic investor ABC Investment, the proceeds from the capital increase will be used primarily to repay shareholder loans provided by the company to Anhui Joyson Safety.

The company will then use these funds to repay its own existing bank loans, thereby reducing the overall scale of liabilities and cutting interest expenses. This move aids the company in steadily advancing the ongoing optimization of its debt structure and is conducive to further enhancing the overall operational resilience and sustainable profitability of the company.