HUALI(SH:603038) Shang Hai Zheng Quan Bao·2025-11-14 18:47Summary of Key Points Core Viewpoint - The company has announced new guarantees provided to its subsidiaries, aimed at supporting their financing needs and ensuring stable operations, which aligns with the company's overall development strategy [10][11]. Group 1: Guarantee Details - The company has signed a comprehensive credit limit contract with Ping An Bank for a new credit exposure limit of RMB 20 million, valid for 12 months, to support its wholly-owned subsidiary, Dongguan Huafuli Decoration Materials Co., Ltd. [1] - The company has also signed a maximum guarantee contract with CITIC Bank for a maximum guarantee of RMB 20 million for its subsidiary, Suzhou Shangyuan Intelligent Technology Co., Ltd., covering debts incurred from November 14, 2025, to November 14, 2026 [1][2]. - Additionally, Shangyuan Intelligent has signed a maximum guarantee contract with CITIC Bank for a maximum guarantee of RMB 10 million for its subsidiary, Jiangsu Nuolai Smart Water Equipment Co., Ltd., covering debts incurred during the same period [2]. Group 2: Internal Decision-Making Process - On May 15, 2025, the company held its annual shareholders' meeting, approving a proposal to provide guarantees for its subsidiaries, with a total maximum guarantee limit of RMB 1.87 billion, including RMB 1 billion for subsidiaries and RMB 870 million for inter-subsidiary guarantees [2]. Group 3: Necessity and Reasonableness of Guarantees - The guarantees are within the authorized limits set by the shareholders' meeting and are intended to support the operational and business development needs of the subsidiaries, reflecting the company's strategic goals [10]. - The company maintains effective control over the daily operations and decisions of the subsidiaries, ensuring that the risks associated with the guarantees are manageable and do not harm the interests of the company or minority shareholders [10][11]. Group 4: Cumulative Guarantee Situation - As of now, the total amount of external guarantees provided by the company and its subsidiaries, including the new guarantees, amounts to RMB 1.16 billion, which represents 83.26% of the company's most recent audited net assets [11]. - The company has not provided guarantees to its controlling shareholders or related parties, and there are no overdue external guarantees [11].