EMEI SHAN(SZ:000888) Zheng Quan Zhi Xing·2025-07-07 16:23Summary of Key Points Core Viewpoint - The company is providing financial assistance of RMB 3.7545 million to its subsidiary, Emei Mountain Cloud Tourism Investment Co., Ltd., for a period not exceeding two years, with interest based on the one-year Loan Prime Rate (LPR) [1][5]. Financial Assistance Overview - The financial assistance is aimed at addressing the operational funding crisis faced by the subsidiary, which is currently unable to pay employee salaries and is in need of stabilization funds [5][6]. - The financial assistance has been approved by the company's board and will be submitted for review at the upcoming shareholder meeting [1][5]. Subsidiary Information - Emei Mountain Cloud Tourism Investment Co., Ltd. was established on July 3, 2019, with a registered capital of RMB 300 million [1][3]. - The company has a total asset of RMB 275.76 million and a total liability of RMB 612.52 million as of December 2024, resulting in a debt-to-asset ratio of 222% [3]. Shareholder Structure - The company holds a 40% stake in the subsidiary, with other shareholders including Emei Mountain Tourism Investment Development Group Co., Ltd. (26%), Sichuan Travel Investment Aviation Tourism Co., Ltd. (19%), and Sichuan Jin Hong Group Co., Ltd. (15%) [2][3]. Financial Metrics - As of March 2025, the subsidiary's total assets were RMB 269.77 million, with liabilities of RMB 612.43 million, leading to a debt-to-asset ratio of 227% [3]. - The subsidiary reported a net asset of -RMB 342.65 million, with cumulative losses of -RMB 643.95 million [3]. Risk Management - The company maintains effective control over the subsidiary's operations and finances, allowing for risk management and monitoring of the financial assistance's usage [4][5]. - The board believes that the risks associated with the financial assistance are manageable and will not significantly impact the company's daily operations [5][6]. Board and Independent Director Opinions - The board has recognized the urgent need for funding to stabilize the subsidiary's operations and ensure employee salary payments [5][6]. - Independent directors have confirmed that the financial assistance terms are fair and will not harm the interests of the company or its shareholders [5][6]. Cumulative Financial Assistance - After this financial assistance, the total amount of financial assistance provided by the company will represent 4.29% of its net assets [6]. - The company has also reported overdue financial assistance totaling RMB 58.62 million, which accounts for 2.24% of its net assets [6].