Zhong Guo Zheng Quan Bao - Zhong Zheng Wang·2025-06-23 23:14Core Viewpoint - The company has approved a guarantee for its subsidiary, Chengdu Huarong International Trade Co., Ltd., with a total limit of up to 284 million RMB, aimed at supporting its operational and business development needs [2][7]. Group 1: Guarantee Overview - On February 24, 2025, the company's board and supervisory board approved a proposal to provide guarantees for its subsidiaries, with a total limit not exceeding 284 million RMB [2]. - The guarantee includes 150 million RMB for subsidiaries with a debt-to-asset ratio of 70% or more, and 134 million RMB for those with a ratio below 70% [2]. - The approved guarantee limit is valid for 12 months from the date of the shareholders' meeting [2]. Group 2: Specific Guarantee Details - On June 23, 2025, the company signed a maximum guarantee contract with Bank of China, providing a maximum joint liability guarantee of 15 million RMB for debts incurred by Huarong International [3][6]. - The guarantee period is three years from the maturity of each debt under the comprehensive credit business [6]. Group 3: Financial Health of the Subsidiary - Chengdu Huarong International Trade Co., Ltd. is a wholly-owned subsidiary of the company, established on February 25, 2019, with a registered capital of 10 million RMB [5]. - The subsidiary is engaged in the trade and sale of chemical products and is not listed as a dishonest executor [5]. Group 4: Board's Opinion - The board believes that the guarantee is necessary to meet the funding needs of Huarong International, and the amount is within the limits approved by the shareholders and board [7]. - Huarong International is currently operating normally, with adequate debt repayment capacity, and the company maintains control over its operations, making the guarantee risk manageable [7][8]. Group 5: Cumulative Guarantee Status - As of the announcement date, the total approved guarantee amount for subsidiaries is 284 million RMB, with a total balance of 85.524 million RMB, representing 49.41% of the company's latest audited net assets [9]. - There are no overdue guarantees or guarantees provided to entities outside the consolidated financial statements [9].