CHIC(SH:601608) Shang Hai Zheng Quan Bao·2025-09-09 21:49Core Viewpoint - The announcement details the progress of guarantee matters related to subsidiaries of CITIC Heavy Industries, including the amounts and conditions of guarantees provided to its wholly-owned subsidiaries, CITIC Heavy Engineering and Luoyang Zhongzhong Construction Installation Engineering [2][4][12]. Summary by Sections Guarantee Overview - As of August 31, 2025, CITIC Heavy Industries has provided guarantees totaling 255.42 million RMB to CITIC Heavy Engineering and 46.01 million RMB to Luoyang Zhongzhong Construction Installation Engineering [2][7]. - The company has a total guarantee limit of 800 million RMB for subsidiaries with a debt-to-asset ratio above 70% and 1.51 billion RMB for those below 70% [4]. Financial Data of Guaranteed Entities - CITIC Heavy Engineering has a registered capital of 400 million RMB and specializes in engineering design and consulting across various industries [9]. - Luoyang Zhongzhong Construction Installation Engineering has a registered capital of 88 million RMB and focuses on construction and related services [10]. Necessity and Reasonableness of Guarantees - The guarantees are necessary for the subsidiaries to secure contracts and ensure project completion, complying with legal requirements for labor wage guarantees [13]. - The company maintains effective control over its subsidiaries, allowing for manageable risk associated with the guarantees [14]. Board of Directors' Opinion - The board supports the guarantee provisions, emphasizing the control over subsidiaries and the potential to reduce financing costs while managing risks effectively [14]. Total External Guarantees - As of August 31, 2025, the total external guarantee amount by the company and its subsidiaries is 2.43 billion RMB, representing 26.92% of the latest audited net assets [16].