Focus Media(SZ:002027) Zheng Quan Zhi Xing·2025-06-25 18:07Overview of Guarantee Situation - The company has approved a total guarantee limit of up to RMB 500 million for its domestic and overseas subsidiaries, with specific limits based on their debt-to-asset ratios [1][6] - For subsidiaries with a debt-to-asset ratio below 70%, the guarantee limit is RMB 100 million, while for those above 70%, it is RMB 400 million [1] Details of the Guarantee Agreement - Focus Media Overseas Investment III Limited (FMOIL III), a subsidiary of the company, has signed a credit agreement with China Merchants Bank for a loan facility of RMB 50 million for its subsidiary, Target Media Hong Kong Limited [2][5] - Shanghai Defeng Advertising Co., Ltd., a wholly-owned subsidiary of the company, will provide joint guarantee and pledge for the debts owed by Target Media Hong Kong under this credit agreement [2][5] Financial Condition of the Guaranteed Entity - Target Media Hong Kong was established on June 4, 2018, with a registered capital of HKD 50 million and has a negative net asset position as of March 31, 2025, amounting to RMB -2,662.76 million [3][4] - As of December 31, 2024, the total assets were RMB 24.92 million, and total liabilities were RMB 44.01 million, resulting in a net loss of RMB 2,400.70 million for the year [4] Guarantee Limits and Responsibilities - The maximum guarantee limit for the debts under the credit agreement is RMB 50 million, covering principal, interest, penalties, and other related costs [5] - Other shareholders of FMOIL III, JAS Investment Group Limited and Top New Development Limited, will provide counter-guarantees based on their shareholding ratios, with a maximum limit of RMB 7.5 million each [2][5] Cumulative Guarantee Amounts - As of the announcement date, the total approved guarantee amount by the company and its subsidiaries is RMB 550 million, which represents approximately 0.59% of the latest audited net assets attributable to shareholders [6]