Shang Hai Zheng Quan Bao·2025-09-22 18:39Core Viewpoint - Huatai Securities has provided an unconditional and irrevocable guarantee for its indirect wholly-owned subsidiary, Pioneer Reward Limited, which has established an offshore medium-term note program with a maximum principal amount of $3 billion [1][3]. Group 1: Guarantee Details - The medium-term note program was established on July 31, 2023, and the company provided a guarantee for the issuance of two notes amounting to RMB 1.7 billion and HKD 2 billion, totaling RMB 3.523 billion when converted at the exchange rate of 1 HKD = 0.9116 RMB as of August 29, 2025 [1]. - As of the issuance date, the total guarantee amount provided by the company for Pioneer Reward Limited, including this issuance, is $3.596 billion [3]. Group 2: Necessity and Reasonableness of the Guarantee - The issuance of the notes is primarily aimed at repaying maturing offshore debts. Pioneer Reward Limited has a debt-to-asset ratio exceeding 70%, but the company holds 100% indirect ownership, allowing it to effectively monitor its debt repayment capacity, making the guarantee risk manageable [4]. Group 3: Internal Decision-Making Process - The company’s board of directors approved a general authorization for debt financing tools at meetings held on December 31, 2020, and February 8, 2021, allowing the company to provide guarantees for offshore debt financing tools for wholly-owned subsidiaries with a debt-to-asset ratio exceeding 70% [6]. - The total amount of guarantees provided by the company and its subsidiaries is RMB 37.04 billion, with RMB 30.44 billion specifically for its controlling subsidiaries, representing 19.32% and 15.88% of the company's latest audited net assets, respectively [7].