Linglong Tyre(SH:601966) Shang Hai Zheng Quan Bao·2025-09-18 20:10Core Viewpoint - The company has provided guarantees for its wholly-owned subsidiaries to secure credit facilities from banks, which is essential for their operational needs and aligns with the company's overall strategic interests [1][8]. Group 1: Guarantee Details - The company signed a guarantee contract with China Construction Bank for a credit limit of 134 million RMB for its subsidiary Jilin Linglong Tire, without providing counter-guarantees [1]. - A maximum guarantee contract was also signed with Liuzhou Bank for a credit limit of 30 million RMB for its subsidiary Guangxi Linglong Tire, also without counter-guarantees [1]. - The total guarantee amount for the subsidiaries is within the approved limit of 13.27 billion RMB, which represents 61.21% of the company's latest audited net assets [2][9]. Group 2: Internal Decision-Making Process - The guarantees were approved during the company's board meeting on April 24, 2025, and the annual shareholders' meeting on May 15, 2025, as part of the company's strategy to support its subsidiaries' business development [2][9]. - The guarantees are intended to be used for the subsidiaries' production and operational needs, with manageable risk levels [3][8]. Group 3: Financial Health of Subsidiaries - The financial status and debt-to-asset ratios of the guaranteed subsidiaries have not shown significant changes, indicating stable financial health [3][8]. - The company maintains effective control over the operational risks and credit status of its subsidiaries, ensuring that the guarantees do not adversely affect the company's normal operations [8]. Group 4: Guarantee Agreements - The guarantee agreements include provisions for joint liability, covering all debts under the main contract, including principal, interest, penalties, and other related costs [5][6][7]. - The guarantee period extends three years beyond the debt fulfillment deadline, ensuring coverage for any potential extensions or early debt maturity [6][7]. Group 5: Cumulative Guarantee Situation - As of the announcement date, the company has provided guarantees solely for its subsidiaries, with a total guarantee amount of 13.27 billion RMB, of which 3.279 billion RMB has been actually provided [9]. - There are no overdue guarantees, and all guarantees are within the approved limits set by the board and shareholders [9].