Nanjing Red Sun Co Ltd

Red Sun recently received the Enterprise Foreign Debt Borrowing Review Registration Certificate issued by the National Development and Reform Commission, approving the company to issue offshore bonds of up to USD 158 million or equivalent. The registration certificate is valid for one year from the date of issuance. This offshore bond issuance has been approved by the company's tenth board of directors at its tenth meeting and by the first extraordinary general meeting of shareholders in 2026. Based on the company's strategic development needs for fine chemical capacity upgrades, industrial chain extension, and green chemical transformation, the company originally planned to issue offshore bonds of up to USD 200 million or equivalent with a term of no more than three years. The aim is to broaden diversified financing channels, optimize the debt structure, meet the needs of project investment, production and operation, and working capital turnover, and promote the company's sustained and steady development.

Red Sun disclosed its earnings forecast, estimating a net profit attributable to the parent company of 95 million to 105 million yuan for the first half of 2026, compared with a loss of 208 million yuan in the same period last year, achieving a turnaround from loss to profit. The non-recurring net loss narrowed to between 35 million and 45 million yuan, from a loss of 237 million yuan a year earlier. The company said the turnaround was mainly due to continuous improvement in its main business operations and the recognition of gains from debt restructuring at a subsidiary, with non-recurring gains and losses expected to be about 138 million yuan for the period, primarily from the aforementioned debt restructuring gains.