Hui Cheng Technology(SZ:300779) Zheng Quan Zhi Xing·2025-06-29 16:06Summary of Key Points Core Viewpoint - The company Qingdao Huicheng Environmental Protection Technology Group Co., Ltd. plans to extend a loan to its controlling subsidiary, Guangdong Dongyue Environmental Technology Co., Ltd., to support its daily operations and alleviate financial pressure, with a loan amount not exceeding 130 million RMB and a term extension of up to 12 months [1][2][9]. Loan Provision Overview - The loan provision was approved in the third board meeting and the third supervisory board meeting held on June 27, 2024, allowing for a maximum loan of 130 million RMB to Dongyue Environmental, with a loan term not exceeding 12 months and an interest rate not lower than the benchmark lending rate published by the People's Bank of China [1][2]. Loan Extension Rationale - The extension is based on the recognition of Dongyue Environmental's technical strength and future development potential, aimed at further supporting its daily operations and business development [2]. Company and Subsidiary Information - Dongyue Environmental is a limited liability company with a registered capital of 246.76 million RMB, established on December 18, 2020, and is involved in various environmental protection services and equipment manufacturing [2][5]. Shareholding Structure - As of the date of the report, Huicheng Environmental holds 93.21% of Dongyue Environmental, indicating substantial control over the subsidiary [4][7]. Financial Performance - As of March 2025, Dongyue Environmental reported total assets of 176.15 million RMB, total liabilities of 122.82 million RMB, and net assets of 53.33 million RMB, with a net profit of 1.86 million RMB for the first quarter [5][6]. Decision-Making Process - The loan extension decision was made within the board's authority and does not require shareholder approval, ensuring compliance with relevant regulations [2][9]. Risk Management - The company has established measures to manage risks associated with the loan, including close monitoring of Dongyue Environmental's financial status and ensuring that the loan does not adversely affect the company's normal operations [8][9]. Board and Supervisory Opinions - Both the board and supervisory committee support the loan extension, emphasizing its alignment with the company's development strategy and its potential to enhance overall capital efficiency [8][9].