Ye Chiu Resources(SH:601388) Shang Hai Zheng Quan Bao·2025-07-25 19:47Core Viewpoint - The company has provided a guarantee of RMB 50 million for its wholly-owned subsidiary, YE CHIU NON-FERROUS METAL (M) SDN.BHD., to support its operational funding needs, which is not classified as a related party guarantee [2][3][5]. Summary by Sections Guarantee Overview - The company has signed a guarantee contract with China Construction Bank (Malaysia) Limited, providing a joint guarantee for a credit loan of RMB 50 million for its subsidiary [5]. - The total amount of guarantees provided to YE CHIU NON-FERROUS METAL (M) SDN.BHD. by the company and its subsidiaries amounts to approximately RMB 3.007 billion, with an actual withdrawal amount of about RMB 879 million [3][4]. Financial Implications - After the new guarantee, the total external guarantees amount to RMB 524.49 million, which represents 119.69% of the company's audited net assets attributable to shareholders for 2024 [4][10]. - The actual withdrawal amount of RMB 107.73 million accounts for 24.58% of the company's audited net assets as of the end of 2024 [4][10]. Necessity and Reasonableness of the Guarantee - The guarantee is based on the operational needs of the subsidiary, which has a good repayment ability and does not have overdue debts or an asset-liability ratio exceeding 70%, indicating low repayment risk [9]. - The loan application is expected to enhance the subsidiary's financial flexibility and improve the efficiency of capital utilization for its daily operations [9]. Board Approval - The board of directors approved the external guarantee plan, allowing guarantees up to RMB 1.2 billion for subsidiaries, with specific limits based on their asset-liability ratios [6][10]. - The new guarantee amount falls within the previously approved total guarantee limit, thus not requiring additional board or shareholder meetings for approval [10].