Sinotec(SH:603121) Zheng Quan Zhi Xing·2025-06-18 09:28Core Viewpoint - The company has provided a guarantee for its wholly-owned subsidiary, Wuhan Huapei, to secure a bank credit line of up to RMB 130 million, which is essential for the subsidiary's operational needs [1][2][4]. Summary by Sections Guarantee Overview - The company signed an irrevocable guarantee agreement with China Merchants Bank for Wuhan Huapei to apply for a maximum credit line of RMB 130 million [1][2]. - The total guarantee amount provided by the company to Wuhan Huapei before this announcement was RMB 160 million, and after this guarantee, the total will be RMB 576.76 million [1][2][6]. - There are no counter-guarantees associated with this guarantee [2][5]. Decision-Making Process - The board of directors approved the guarantee during meetings held on April 23, 2025, and May 15, 2025, allowing for a total guarantee limit of RMB 115 million for the year 2025 [1][4]. Subsidiary Information - Wuhan Huapei is a wholly-owned subsidiary of the company, holding 100% equity [2][3]. - Recent financial data for Wuhan Huapei shows total assets of RMB 869.35 million and total liabilities of RMB 352.24 million as of March 31, 2025 [3]. Guarantee Agreement Details - The guarantee covers the principal balance of loans and other credit amounts provided by the bank, with a maximum guarantee amount of RMB 130 million [3][5]. - The guarantee period extends from the effective date of the guarantee until the expiration of the loans or credit agreements plus an additional three years [4]. Necessity and Reasonableness of the Guarantee - The guarantee is deemed necessary to support the daily operations of Wuhan Huapei, which is under effective management by the company [4][6]. - The board has assessed the subsidiary's ability to repay its debts, indicating that the risk associated with the guarantee is manageable [4][6]. Total External Guarantees - As of the announcement date, the total external guarantees provided by the company and its subsidiaries amount to RMB 115 million, which represents 93.37% of the company's latest audited net assets [5][6]. - The company has no overdue external guarantees [6].