SANXING(SH:601567) Zhong Guo Zheng Quan Bao - Zhong Zheng Wang·2025-12-20 06:20Overview of Guarantees - The company has signed a guarantee contract with Bank of Communications for a maximum principal amount of RMB 440 million, effective from December 1, 2025, to December 1, 2030 [1] - The company has also signed a maximum guarantee contract with Agricultural Bank of China for a maximum principal amount of RMB 675 million, effective from December 10, 2025, to December 9, 2028 [1] - The company applied for a letter of guarantee from Standard Chartered Bank for USD 100,000 (approximately RMB 716,200), with an initial validity until April 10, 2026, which has been extended to May 15, 2026 [2] Internal Decision-Making Process - The company’s board of directors approved the guarantee proposals on April 24, 2025, and the annual shareholders' meeting on May 16, 2025, allowing for a total guarantee amount of up to RMB 974.85 million, with RMB 450 million specifically for the subsidiary [2] Financial Health of the Guaranteed Entity - The subsidiary, Aux Smart Technology, has a debt-to-asset ratio of 68.93% as of the end of 2024, indicating a significant level of leverage [2] Details of Guarantee Agreements - The guarantee to Bank of Communications covers all principal debts and associated costs, with a maximum guarantee amount of RMB 440 million [4][5] - The guarantee to Agricultural Bank of China also includes all principal debts and associated costs, with a maximum guarantee amount of RMB 675 million [7][8] Necessity and Reasonableness of Guarantees - The guarantees are deemed necessary to meet the funding needs of the subsidiary and ensure its stable operations, with the company maintaining control over the subsidiary's financial health [9] Board of Directors' Opinion - The board believes that providing guarantees to the subsidiary is based on actual operational needs and that the associated risks are manageable [10] Cumulative Guarantee Amounts - As of the announcement date, the total amount of guarantees provided by the company to its subsidiaries is RMB 975.35 million, which represents 80.73% of the company's net assets attributable to shareholders for the year 2024 [10]