SSC(SH:600871) Sou Hu Cai Jing·2025-10-23 12:45Core Viewpoint - The company has provided guarantees for its wholly-owned subsidiaries and joint ventures, with specific limits and terms approved by the board and shareholders, indicating a strategic move to support its international operations and projects, particularly in Mexico [2][3][11]. Summary by Sections Guarantee Overview - As of the first three quarters of 2025, the company provided a total guarantee amount of RMB 18.85 billion, which accounts for 21.8% of the company's latest audited net assets [4]. - The cumulative guarantee balance as of September 30, 2025, reached RMB 280.59 billion [4][14]. Guarantee Limits - The board approved a maximum guarantee limit of RMB 285 billion for credit guarantees and RMB 230 billion for performance guarantees for wholly-owned subsidiaries, along with a limit of USD 2.75 billion for joint ventures, effective from the 2024 annual shareholders' meeting until the 2025 annual shareholders' meeting [3][12]. Internal Decision-Making Process - The board's resolutions regarding guarantees were made on March 18, 2025, and were subsequently approved at the 2024 annual shareholders' meeting held on June 6, 2025 [5][12]. Guarantee Agreements - The company has entered into various credit and performance guarantee agreements with major banks and international companies, with a total credit guarantee amounting to approximately RMB 186.57 billion [9]. - Performance guarantees include contracts related to projects in Uganda and Algeria, with a notable performance guarantee of USD 2.4 million for a project in Algeria [9][10]. Necessity and Reasonableness of Guarantees - The guarantees are deemed necessary to support the company's business operations, especially in international markets, and to mitigate related risks, particularly for the EBANO oilfield project in Mexico [11].