HUALI(SH:603038) Zheng Quan Zhi Xing·2025-05-27 11:24Summary of Key Points Core Viewpoint - The company has provided a guarantee of up to RMB 10 million for its subsidiary Jiangsu Nuolai Smart Water Equipment Co., Ltd. to support its financing needs, which is within the authorized limit set by the shareholders' meeting [1][4]. Group 1: Guarantee Details - The guarantee is provided by Suzhou Shangyuan Intelligent Technology Co., Ltd., a subsidiary of the company, to Jiangsu Nuolai for a bank credit application with a maximum amount of RMB 10 million [1][3]. - The guarantee period is from May 27, 2025, to 2026, covering various financing types including working capital loans and trade financing [1][2]. - The total amount of guarantees provided by the company and its subsidiaries has reached RMB 902 million, which is 57% of the latest audited net assets [4]. Group 2: Financial Status of Jiangsu Nuolai - As of March 31, 2025, Jiangsu Nuolai reported total assets of RMB 99.28 million and a net asset of RMB 40.27 million, with a revenue of RMB 9.45 million and a net loss of RMB 714,400 for the first quarter of 2025 [2][3]. - Jiangsu Nuolai is a subsidiary of Suzhou Shangyuan, in which the company holds a 51% stake, indirectly owning 27.03% of Jiangsu Nuolai [3]. Group 3: Rationale for the Guarantee - The guarantee is deemed necessary and reasonable to support the operational and business development needs of the subsidiary, aligning with the company's overall strategic goals [4]. - The company maintains effective control over the subsidiary's operations, which helps mitigate potential risks associated with the guarantee [4].