Hui Cheng Technology(SZ:300779) Zheng Quan Zhi Xing·2025-07-28 16:26Summary of Key Points Core Viewpoint - The company, Qingdao Huicheng Environmental Protection Technology Group Co., Ltd., is providing a guarantee for its associate company, Shandong Huiya Environmental Technology Co., Ltd., to apply for a comprehensive credit facility of up to RMB 45 million, with the company guaranteeing up to RMB 15.694 million based on its 34.8755% equity stake in Huiya [1][2][5]. Group 1: Guarantee Overview - The company will provide a joint liability guarantee of up to RMB 15.694 million for Shandong Huiya's credit application, with the remaining guarantee provided by other shareholders [1][4]. - The guarantee is subject to approval by the shareholders' meeting due to the amount exceeding 30% of the company's latest audited total assets [3][5]. Group 2: Financial Status of the Guaranteed Entity - As of December 31, 2024, Shandong Huiya had total assets of RMB 188.6003 million and a net loss of RMB 4.79 million [3]. - As of June 30, 2025, total assets increased to RMB 192.488 million, with a net loss of RMB 6.2171 million [3]. Group 3: Board and Supervisory Opinions - The board of directors supports the guarantee, stating it will enhance Huiya's operational efficiency and financial capability, with risks considered manageable [5][6]. - The supervisory board agrees that the guarantee will not adversely affect the company's operations and is within acceptable risk limits [6][7]. Group 4: Independent Review - The independent directors have reviewed the guarantee proposal and concluded that it adheres to principles of fairness and will not harm the company's or shareholders' interests [6][8]. - The underwriting institution, Zhongde Securities, has confirmed that the necessary approval procedures have been followed for the guarantee transaction [8].