HUALI(SH:603038) Xin Lang Cai Jing·2025-07-04 19:53Summary of Key Points Core Viewpoint - The company has provided a guarantee for its wholly-owned subsidiary, Dongguan Huafuli Decoration Materials Co., Ltd., amounting to a maximum of RMB 85 million, to support its banking credit application [2][3][7]. Group 1: Guarantee Details - The total amount of guarantees provided by the company and its subsidiaries for Dongguan Huafuli is RMB 135 million, including the newly added guarantee [2][3]. - The guarantee is a joint liability guarantee, signed with Guangfa Bank, and is part of a broader authorization from the company's shareholders to provide guarantees up to RMB 1.87 billion for subsidiaries [4][7]. - The guarantee period is three years from the debt maturity date, with specific conditions for early repayment and extension agreements [7]. Group 2: Financial Status of the Subsidiary - As of December 31, 2024, Dongguan Huafuli had total assets of RMB 513.06 million and net assets of RMB 398.64 million, with a revenue of RMB 541.53 million and a net profit of RMB 31.89 million for the year [5]. - By March 31, 2025, the subsidiary's total assets increased to RMB 521.14 million, with net assets of RMB 406.83 million, and revenue of RMB 93.96 million with a net profit of RMB 8.19 million for the first quarter [5]. Group 3: Necessity and Reasonableness of the Guarantee - The guarantee aligns with the company's strategic goals and supports the operational needs of the subsidiary, which is under the company's effective control [8]. - The company has assessed the subsidiary's stable operating conditions and good credit status, indicating that the guarantee risk is manageable and does not harm the interests of the company or minority shareholders [8]. Group 4: Overall Guarantee Situation - The total external guarantees provided by the company and its subsidiaries amount to RMB 856 million, representing 53.89% of the company's latest audited net assets, with no overdue guarantees reported [9].