TORCH ELECTRON(SH:603678) Shang Hai Zheng Quan Bao·2025-09-26 19:30Core Viewpoint - The company has provided guarantees for its subsidiaries to support their operational needs, which aligns with its overall strategic interests and aims to lower financing costs [9][10]. Group 1: Guarantee Details - The company signed a maximum guarantee contract with Ningbo Bank for three subsidiaries, providing a total guarantee of RMB 22,500 million [1]. - Additionally, a guarantee of RMB 2,000 million was provided to Shanghai Torch Group through a contract with China Merchants Bank [1][8]. - The total planned guarantee for subsidiaries in 2025 is capped at RMB 22.51 billion, with an additional guarantee of up to RMB 2.45 billion for transactions with suppliers [2]. Group 2: Internal Decision-Making Process - The company held multiple board meetings and a shareholder meeting to approve the guarantees and the overall credit limit for 2025 [2][10]. - The adjustments to the guarantee limits for subsidiaries are within the approved range and do not require further board or shareholder meetings [2]. Group 3: Guarantee Recipients - The guarantees are provided to the following subsidiaries: Suzhou Leidu (RMB 20,500 million), Shanghai Leidu (RMB 1,500 million), Shanghai Zihua Light (RMB 500 million), and Shanghai Torch Group (RMB 2,000 million) [1][5][7][8]. - Each guarantee includes coverage for principal, interest, and various fees associated with the debt [4][5][7][8]. Group 4: Necessity and Reasonableness of Guarantees - The guarantees are deemed necessary for the daily operations of the subsidiaries and are expected to enhance business stability and growth [9]. - The company maintains effective control over operational risks, ensuring that the guarantees do not adversely affect its normal operations or shareholder interests [9]. Group 5: Cumulative Guarantee Information - As of the announcement date, the total external guarantees provided by the company and its subsidiaries amount to RMB 17.29 billion, representing 31.52% of the audited net assets as of December 31, 2024 [11]. - There are no overdue guarantees reported [11].