Gelonghui, September 12丨Hainan Rubber (601118.SH) announced that Super Typhoon No. 11 of 2024 recently made landfall for the first time along the coast of Wengtian Town, Wenchang City, Hainan Province. At the time of landfall, the maximum wind force near the center was above level 17 (62 m/s). Affected by this, Hainan Province suffered a serious disaster. Before the typhoon hit, Hainan Natural Rubber Industry Group Co., Ltd. had already initiated an emergency plan for Taiwan defense and fully deployed all flood control tasks. Since this typhoon was a super typhoon level and extremely destructive, the strong storms and floods caused unavoidable damage to varying degrees of damage to biological assets such as rubber, as well as fixed assets such as office space, plants, equipment, and roads, at the company headquarters and subsidiary companies in Hainan Province, but there were no casualties.
The company's biological assets, such as rubber, are distributed in various regions of Hainan Island, causing great trouble for the company to inspect property losses due to power outages, network outages, and poor roads in some regions. As of September 11, 2024, according to preliminary statistics, the waste area of the company's rubber plantations is about 0.23 million acres (including cut trees and small to medium seedlings), and dry rubber production is expected to drop by about 0.018 million tons throughout the year. After the typhoon passed through, the company quickly organized personnel to investigate potential safety hazards and resume production after the disaster, repair damaged buildings, plant equipment, and infrastructure such as Jiaoyuan road and bridge, unclog Jiaoyuan roads, fix and reinforce fallen rubber trees in order to restore production and operation order as soon as possible, and strive to minimize damage caused by the disaster. At present, the company headquarters and subsidiary companies that were less affected by the disaster have carried out normal production and operation work, and some of the base branches that were severely affected by the disaster are resuming production and operation one after another.
The main property damaged this time has already been insured, and the insurance company will pay within the scope of liability and compensation amount agreed in the insurance agreement, which is expected to mitigate the impact of the storm on the company. The company has reported preliminary damage statistics to the insurance company. The insurance company is actively carrying out insurance claims related work, and has prepaid 102 million yuan of full cost insurance claims for part of the rubber tree and 30 million yuan for partial rubber income insurance claims. The actual compensation amount will be determined by final approval; at the same time, the company is actively seeking special financial support from the state and emergency loan support from financial institutions after the disaster.
