China Hainan Rubber Industry Group (601118.SH) disclosed an announcement regarding the impact of Typhoon Swordfish on the company. Due to strong winds and heavy rainfall brought by the typhoon, rubber and other biological assets as well as supporting production facilities and fixed assets of some subsidiaries within Hainan Province suffered varying degrees of damage, with no casualties reported.
According to preliminary statistics, approximately 2,800 acres of the company's rubber plantations were scrapped, and approximately 360,000 scattered damaged rubber trees and non-rubber biological assets (including tapped trees and young saplings) were affected. The company expects annual dry rubber production to decrease by approximately 2,500 tons.
The main damaged property has been insured, and the insurance company will provide compensation within the scope of liability and compensation amounts stipulated in the insurance agreement, which is expected to mitigate the impact of the wind disaster on the company. The company has reported the preliminary damage assessment to the insurance company, which is actively conducting insurance claim-related work and has pre-paid 5 million yuan in rubber tree cost insurance compensation.
