Science Environmental Protection (SH:688480) Zheng Quan Zhi Xing·2025-07-21 12:08Core Viewpoint - The company, Sains Environmental Co., Ltd., is seeking to increase its comprehensive credit limit and guarantee amount to support new project investments in Anhui and Shandong provinces, with a total credit limit proposed to reach up to RMB 1.7 billion [1][2]. Summary by Sections Previous Approval Overview - The company previously approved a comprehensive credit limit of up to RMB 1.5 billion and a mutual guarantee amount not exceeding RMB 300 million during a board meeting on April 23, 2025 [1]. New Credit Application Overview - The company plans to apply for an additional comprehensive credit limit of up to RMB 200 million, raising the total limit to RMB 1.7 billion. This credit will support various financing needs, including medium to long-term project loans and trade financing [2]. New Guarantee Application Overview - The company intends to increase the mutual guarantee amount between itself and its subsidiaries by up to RMB 100 million, bringing the total guarantee amount to RMB 400 million. This is aimed at enhancing flexibility for business development while maintaining risk control [2]. New Guarantee/Guaranteed Entities - Shandong Longli Chemical Co., Ltd. is a proposed wholly-owned subsidiary responsible for a project with an estimated investment of RMB 600 million [3]. - Tongling Longrui Chemical Co., Ltd. is a proposed holding subsidiary with an estimated investment of RMB 210 million for a project [4]. Reasons and Necessity for Guarantees - The guarantees are necessary to support the company's strategic development and ensure controlled risks, which will not adversely affect the interests of the company and its shareholders [5]. Review Procedures and Opinions - The board of directors approved the increase in credit and guarantee limits on July 19, 2025, and the proposal will be submitted for shareholder approval [5]. - The supervisory board supports the proposal, stating it will not negatively impact the company's financial status or independence [5]. Cumulative External Guarantee Amount - As of the disclosure date, the company has a balance of zero for mutual guarantees provided to subsidiaries [6]. Sponsor's Review Opinion - The sponsor believes the decision-making process for increasing the credit and guarantee limits complies with relevant laws and regulations, and it aligns with the company's operational and growth needs [6].