RICHEN(SH:603755) Zheng Quan Zhi Xing·2025-08-22 16:29Summary of Key Points Core Viewpoint - The company, Qingdao Richen Food Co., Ltd., is providing a guarantee for its wholly-owned subsidiary, Richen Food (Jiaxing) Co., Ltd., to support a bank loan application for project construction, with a total guarantee amount not exceeding RMB 500 million [1][2]. Group 1: Guarantee Details - The guarantee amount is estimated at RMB 50 million, with an actual guarantee balance of RMB 95.73 million [1]. - The guarantee is part of a total external guarantee amount that does not exceed RMB 500 million, which represents 13.15% of the company's audited net assets for the year 2024 [4]. - The guarantee is valid for 12 months from the date of approval at the upcoming shareholder meeting [2]. Group 2: Subsidiary Information - Richen Food (Jiaxing) Co., Ltd. is a wholly-owned subsidiary of Qingdao Richen Food Co., Ltd., established on January 12, 2021, with a registered capital of RMB 30 million [2]. - The subsidiary's total assets as of the first half of 2025 are RMB 507.11 million, with total liabilities of RMB 164.47 million [2]. - The subsidiary reported a net profit of RMB -0.26 million for the first half of 2025, compared to a profit of RMB 171.77 million for the entire year of 2024 [2]. Group 3: Rationale and Board Opinion - The guarantee is deemed necessary and reasonable to support the subsidiary's project construction needs, as its debt-to-asset ratio is below 70% [3][4]. - The board believes that the guarantee will not adversely affect the company's normal operations or the interests of shareholders, particularly minority shareholders [4]. - The company maintains control over the subsidiary's operations and finances, allowing for effective risk management [4].