Mei Ri Jing Ji Xin Wen·2025-04-17 08:25Core Viewpoint - The company Wandes disclosed that its associate, Caofeidian Wandes Environmental Technology Co., Ltd., applied for a credit facility of up to 200 million yuan from HSBC, with a guarantee of 160 million yuan provided by its controlling shareholder, Dongjiang Environmental [1][3]. Group 1: Financial Obligations and Guarantees - Wandes holds a 16% stake in Caofeidian Wandes and has agreed to provide a counter-guarantee for 16% of the 160 million yuan debt, which includes principal, interest, penalties, and other related costs [1][2]. - Dongjiang Environmental has already fulfilled its guarantee obligation to HSBC, amounting to 111 million yuan, which includes a loan principal of 110 million yuan and interest of 746,800 yuan [3]. - Wandes has a total external guarantee amounting to 515 million yuan, representing 46.38% of the audited net assets and 23.53% of total assets for the fiscal year 2023 [4]. Group 2: Financial Performance of Caofeidian Wandes - Caofeidian Wandes reported revenues of 31.68 million yuan and 7.96 million yuan for the first quarter of 2024 and 2025, respectively, with net losses of 22.25 million yuan and 6.29 million yuan during the same periods [4]. - The company has faced challenges in waste collection and disposal pricing, leading to operational cash flow difficulties and an inability to repay HSBC on time [3][5]. Group 3: Cash Flow and Impact on Operations - Wandes has a cash balance of 76.82 million yuan as of September 2024, and the company indicated that fulfilling the counter-guarantee obligation would occupy cash flow but would not significantly impact normal operations [1][4]. - If Wandes chooses not to pay the amount to Dongjiang Environmental, the latter may exercise its pledge rights, which could lead to a potential recovery of funds if there is a surplus after the pledge is realized [5].