Swan Cotton Machinery(SH:603029) Zheng Quan Zhi Xing·2025-06-06 10:26Summary of Key Points Core Viewpoint - The company, Shandong Swan Cotton Machinery Co., Ltd., is providing guarantees for cotton picker mortgage sales, with a current guarantee balance of 379.83 million yuan, which accounts for 42.36% of the company's latest audited net assets [1]. Group 1: Guarantee Overview - The company has received approval from its shareholders' meetings in 2022 and 2023 to provide guarantees for eligible cotton picker users' mortgage purchases, utilizing methods such as cash collateral, repurchase guarantees, and covering the shortfall [1]. - The company has disclosed relevant information regarding these guarantees on the Shanghai Stock Exchange [1]. Group 2: Progress of Guarantees - The company has implemented risk management measures by early identification and intervention, conducting assessments of existing mortgage loan users' creditworthiness and repayment capabilities [2]. - The company has compensated 1.09 million yuan for overdue principal and interest for 11 cotton picker buyers, with the amount deducted from the company's guarantee account by Changji Rural Commercial Bank on June 5, 2025 [2]. Group 3: Impact on the Company and Future Measures - The compensation is part of the company's proactive risk management strategy, allowing it to obtain recovery rights for the compensated amount and pursue legal avenues for recovery [2]. - The company has recognized a provision for expected liabilities of 18.72 million yuan related to the existing mortgage loan guarantees, and the compensation will not affect its normal production and operations [2].