SFX(SH:600370) Shang Hai Zheng Quan Bao·2025-03-17 18:52Core Viewpoint - Jiangsu Sanfangxiang Ju Materials Co., Ltd. has announced a guarantee for its wholly-owned subsidiary, Jiangsu Hailun Petrochemical Co., Ltd., with a maximum principal limit of RMB 110 million, bringing the total guarantees provided to Hailun Petrochemical to RMB 505.83 million [2][4]. Summary by Sections Guarantee Overview - The company signed a "Maximum Guarantee Contract" with Zheshang Bank Wuxi Branch on March 17, 2025, to provide a joint liability guarantee for Hailun Petrochemical's debts, with a maximum amount of RMB 110 million [5]. - The total mutual guarantees among the company and its subsidiaries are capped at RMB 11 billion, as approved in the 2023 annual shareholders' meeting [5]. Financial Data of the Guaranteed Entity - As of December 31, 2023, Hailun Petrochemical reported total assets of RMB 1,197.30 million, total liabilities of RMB 692.24 million, and a net asset of RMB 505.06 million, with a debt-to-asset ratio of 57.82% [7]. - As of September 30, 2024, the company had total assets of RMB 1,454.40 million, total liabilities of RMB 921.11 million, and a net asset of RMB 533.29 million, with a debt-to-asset ratio of 63.33% [7]. Guarantee Contract Details - The maximum principal amount guaranteed is RMB 110 million, covering various financial agreements between Hailun Petrochemical and Zheshang Bank [8]. - The guarantee includes all costs related to the debt, such as principal, interest, penalties, and legal fees [8][9]. Board of Directors' Opinion - The board believes that providing this guarantee is essential for the operational needs of the company and its subsidiaries, ensuring business continuity and aligning with the company's overall interests and development strategy [11].