By Dominikus
China-based CNGR Advanced Material Co., Ltd. has approved shareholder loans totaling up to US$23 million to two of its Indonesian affiliated companies to support working capital needs and accelerate development of integrated nickel projects.
The loans will be extended to PT HengSheng New Energy Material Indonesia and PT Stardust Estate Investment (SEI), where CNGR holds 15% and 20% equity stakes respectively.
Deng Weiming, Chairman and President of CNGR, highlighted the strategic importance of the loans: “Both HengSheng and SEI play vital roles in building a vertically integrated nickel value chain. This funding will help ensure timely implementation of key nickel matte and related industrial projects.” He added that the loans are structured fairly with pro-rata contributions from all shareholders and reasonable interest rates.
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Under the terms, CNGR will provide up to $18 million (or RMB equivalent) to HengSheng Indonesia with an interest rate capped at 10% and a maturity not exceeding one year. A separate loan of up to $5 million will be extended to SEI, with an interest rate capped at 7%, also for one year. Both loans will be revolving facilities, allowing reuse within 12 months subject to shareholder approval.
Established in 2021 and based in Bantaeng, South Sulawesi, HengSheng Indonesia reported total assets of RMB 953.2 million but a net loss of RMB 51.2 million for Q1 2025. CNGR previously provided $16.32 million in financial support to HengSheng in 2024, all repaid on time, and the company maintains a clean credit record.
SEI, operator of a nickel industrial park, was founded in 2018 with registered capital of IDR 1.2 billion. It posted RMB 4.55 million in revenue and a net loss of RMB 8.49 million for Q1 2025. CNGR did not provide financial support to SEI in 2024, and the company similarly maintains a clean credit history.
Editing by Alexander Ginting
