Sunxing(SH:603978) Shang Hai Zheng Quan Bao·2025-08-10 18:40Summary of Key Points Core Viewpoint - Shenzhen Xinxing Light Alloy Materials Co., Ltd. has signed a maximum guarantee contract with CITIC Bank for a credit application of 160 million yuan for its subsidiary, Luoyang Xinxing, indicating a strategic move to support its subsidiaries' financial needs and operational stability [2][9]. Group 1: Guarantee Overview - The company has provided a joint liability guarantee for its subsidiary Luoyang Xinxing to secure a credit line of 160 million yuan from CITIC Bank [2]. - The total expected guarantee for the year 2025 includes 1.8 billion yuan for Luoyang Xinxing, 350 million yuan for Songyan New Energy, and 350 million yuan for Ganzhou Songhui, with a total of 2.5 billion yuan in guarantees planned [3]. Group 2: Internal Decision-Making Process - The board of directors approved the guarantee during meetings held on April 24, 2025, and May 15, 2025, confirming the necessity of the guarantees for the subsidiaries' operational needs [3][9]. - The board believes that the guarantees align with the company's strategic development and will not harm the interests of the company or its shareholders [9]. Group 3: Guarantee Details - The guarantee covers the principal amount, interest, penalties, and all related costs associated with the debt [7]. - The guarantee period is set for three years from the maturity date of the main contract, with specific conditions outlined for various types of financial agreements [7][8]. Group 4: Financial Position and Risk Assessment - As of the announcement date, the total external guarantees provided by the company and its subsidiaries amount to 3.4017524 billion yuan, which is 196.58% of the company's audited net assets for 2024 [9]. - There are no overdue guarantees, and the company has not provided guarantees for controlling shareholders or related parties [9].