QJSL(SH:600283) Zheng Quan Zhi Xing·2025-08-29 17:14Summary of Key Points Core Viewpoint - The company, Qianjiang Water Conservancy, has announced a guarantee of 15 million yuan for its wholly-owned subsidiary, Dongyang Qianjiang Water Co., Ltd, to fulfill a contractual obligation related to a PPP project [1][2][3]. Group 1: Guarantee Details - The guarantee amount provided is 15 million yuan, which is within the previously anticipated limit [1]. - The guarantee is backed by a counter-guarantee [1]. - The total external guarantees of the company and its subsidiaries amount to 561.32 million yuan, which represents 14.83% of the company's latest audited net assets [7]. Group 2: Financial Condition of the Subsidiary - Dongyang Qianjiang Water Co., Ltd has been operating at a loss, with a net profit of -4.35 million yuan for the audited year 2024 [5]. - The total assets of Dongyang Qianjiang are approximately 53.08 million yuan, with total liabilities of about 42.84 million yuan [5]. - The company has been unable to secure independent credit from banks due to its financial status, necessitating the parent company's guarantee [3][5]. Group 3: Contractual Obligations - According to the project contract, Dongyang Qianjiang is required to provide a risk guarantee of 15 million yuan to the project owner, which is the Dongyang Water Bureau [2][6]. - The guarantee will be in the form of an irrevocable, on-demand performance bond, valid until November 1, 2027 [6]. - The company is responsible for ensuring the normal operation of the wastewater treatment plant under the PPP project [7].