KSHG(SH:605333) Shang Hai Zheng Quan Bao·2025-09-25 20:53Core Viewpoint - The company has provided a guarantee of RMB 20 million for its wholly-owned subsidiary, Chongqing Huguang Automotive Electric Co., Ltd., to support its operational financing needs [2][3]. Summary by Sections Guarantee Overview - The company has provided a joint liability guarantee of RMB 20 million to Chongqing Huguang for a credit facility from the China Development Bank [2]. - As of the disclosure date, the total guarantee amount provided to Chongqing Huguang is RMB 500.5845 million, including the current guarantee [2]. Approval Process - The company's board approved the guarantee during a meeting on April 25, 2025, allowing for a total guarantee of up to RMB 2 billion for subsidiaries, with a specific limit of RMB 600 million for Chongqing Huguang [3][8]. - This guarantee does not require further board or shareholder approval as it falls within the previously approved limits [3]. Subsidiary Information - Chongqing Huguang is a wholly-owned subsidiary of the company, registered in Chongqing with a registered capital of RMB 300 million [4][5]. - The subsidiary's business includes manufacturing and research of automotive parts and components [4]. Guarantee Contract Details - The guarantee covers all principal, interest, penalties, and other costs associated with the loans taken by Chongqing Huguang [6]. - The guarantee period extends from September 25, 2025, to September 25, 2026, with specific terms for repayment [6]. Necessity and Reasonableness of Guarantee - The guarantee is deemed necessary for the daily operations of Chongqing Huguang and aligns with the company's overall strategic goals [7]. - The company maintains control over the subsidiary's operations and financial management, mitigating potential risks [7]. Board Opinion - The board believes that providing this guarantee supports the subsidiary's funding needs and is in the best interest of the company and its shareholders [8][9]. Cumulative Guarantee Information - As of the announcement date, the total external guarantees provided by the company amount to RMB 1.1719398 billion, representing 52.63% of the company's latest audited net assets attributable to shareholders [9].