JLMAG (06680.HK): Proposes Change of Use of Proceeds from H-Share Convertible Bonds, Reallocating USD 15 Million to Debt Repayment and Raw Material Procurement
NewTimeSpace News: On 20 August 2026, Jiangxi JL MAG Rare-Earth Co., Ltd. (06680.HK) announced a proposal to reallocate an aggregate of USD 15 million of the unutilised net proceeds originally earmarked for share buybacks of H shares, of which USD 6 million will be reallocated to debt repayment and USD 9 million to raw material procurement under general working capital. The proposed change is subject to approval by the company's shareholders by way of an ordinary resolution at a general meeting.
The H-share convertible bonds are USD 117.5 million 1.75% guaranteed convertible bonds due 2030 issued by the wholly-owned subsidiary JL MAG Green Technology (Hong Kong) Co., Ltd., with net proceeds of approximately USD 115 million; as of the announcement date, approximately USD 8.07 million had been utilised and approximately USD 106.93 million remained unutilised. After the proposed change, the unutilised net proceeds will be allocated as follows: USD 16.00 million (14.96%) to debt repayment, USD 55.33 million (51.74%) to H-share buybacks, USD 34.00 million (31.80%) to general working capital and USD 1.60 million (1.50%) to operating expenses of the issuer, all expected to be utilised by the end of 2027.
Regarding debt repayment, as of 30 June 2026, the group's short-term and long-term borrowings were approximately RMB 806.3 million and RMB 1,068.7 million respectively, with a debt-to-asset ratio of 51.8%, and approximately RMB 206 million of loans maturing within the next six months. Regarding raw material procurement, the group operates four magnet plants in Ganzhou, Baotou and Ningbo with an annual capacity of 40,000 tonnes of high-performance rare-earth permanent magnet materials, expected to increase to 60,000 tonnes by the end of 2027; in the first half of 2026, sales revenue from new energy vehicles and auto parts reached RMB 2.228 billion, up 33.04% year-on-year, and from robotics and industrial servo motors RMB 261 million, up 96.40% year-on-year. The directors consider the proposed change will improve capital efficiency and is in the interests of the group and its shareholders as a whole.
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