Zheng Quan Zhi Xing·2025-07-22 16:16Summary of Key Points Core Viewpoint - Shanghai Electric Group Co., Ltd. plans to provide a guarantee of €300 million (approximately RMB 2.7 billion) for its wholly-owned subsidiary Broetje-Automation GmbH and its wholly-owned subsidiaries to support their operations and meet the requirements of Airbus SAS [1][5]. Group 1: Guarantee Details - The guarantee amount is €300 million, effective until September 1, 2031, with a maximum duration of 74 months [1][5]. - The guarantee is contingent upon the approval of the company's shareholders and the transfer of 100% equity of Broetje-Automation to Shanghai Electric Automation Group Hong Kong Limited [1][5]. - There is no counter-guarantee involved in this transaction [1][5]. Group 2: Financial Metrics - As of the announcement date, the total amount of external guarantees provided by the company and its subsidiaries is RMB 1,013,293.5 million, which accounts for 19.1% of the company's latest audited net assets [6]. - The debt-to-asset ratio of Broetje-Automation exceeds 70%, necessitating shareholder approval for the guarantee [2][4]. Group 3: Rationale for the Guarantee - The board of directors believes that the guarantee is necessary to meet Airbus's requirements for strategic suppliers, as Airbus is a significant customer of Broetje-Automation [5]. - The past cooperation between Broetje-Automation and Airbus has been positive, reinforcing the rationale for the guarantee [5].