SKSHU(SH:603737) Shang Hai Zheng Quan Bao·2025-12-05 19:48Core Viewpoint - The company, Sankeshu Coatings, has announced a guarantee agreement with Fujian Huato Bank, allowing for a loan of up to RMB 400 million to its approved distributors, with the company potentially covering up to RMB 40 million in case of default by the distributors [2][4]. Group 1: Guarantee Details - The company signed a cooperation agreement with Huato Bank on December 5, 2025, to provide loans to approved distributors, with a maximum guarantee amount of RMB 40 million [2]. - The company has previously approved a total guarantee limit of RMB 350 million for loans to qualified distributors, valid until the next annual shareholders' meeting [3][9]. - The guarantee is structured as a joint liability guarantee, covering the principal amount of the loans [6][14]. Group 2: Risk Control Measures - The company and Huato Bank will conduct thorough investigations and ratings of the distributors' qualifications to ensure their financial stability and repayment capability [8]. - Distributors must submit confirmed orders to apply for financing, ensuring that the loan funds are used for specific purposes [8]. - Distributors are required to provide counter-guarantees, including assets from themselves or their controlling parties, to mitigate risks [8]. Group 3: Board Opinions and Approval - The company's board approved the guarantee proposal during meetings held on April 24 and May 16, 2025, confirming that the guarantees fall within the previously established limits [9][22]. - The company has a total guarantee amount of up to RMB 9.5 billion approved for subsidiaries, which is 353.69% of the latest audited net assets [10][22]. - As of December 3, 2025, the total external guarantee balance is RMB 3.278 billion, representing 122.05% of the latest audited net assets, with no overdue guarantees reported [10][22].