Core Viewpoint - The company, Shandong High Energy Group Co., Ltd., is providing guarantees for its subsidiary, Yantai Shifang Environmental Energy Co., Ltd., in a financing lease agreement with Cinda Financial Leasing Co., Ltd. The total guarantee amount exceeds the company's audited net assets, raising concerns about potential risks associated with such high levels of guarantees [2][5][13]. Summary by Sections Guarantee Overview - The company has approved a total guarantee amount not exceeding RMB 2.655 billion for its subsidiaries within a 12-month period starting from the approval date of the annual shareholders' meeting [2][5]. - The company is providing a joint liability guarantee for Yantai Shifang's financing lease of RMB 85 million with a lease term of 8 years [2][5]. Financial Data - As of the announcement date, the total guarantees provided by the company to its subsidiaries amount to RMB 2.823 billion, which is 197.64% of the company's latest audited net assets [13]. - The guarantees from the controlling subsidiaries to the company total RMB 357.8 million, accounting for 25.04% of the company's latest audited net assets [13]. Subsidiary Information - Yantai Shifang Environmental Energy Co., Ltd. has a registered capital of RMB 50 million and is involved in waste management and environmental services [4][5]. - The company holds 100% equity in Yantai Shifang, which is engaged in the processing of kitchen waste and other environmental services [4][5]. Contractual Details - The financing lease contract includes provisions for the lessee to pay all rental fees, including any penalties or additional costs incurred [6][9]. - The guarantee period for the obligations under the lease is set to last until three years after the final payment due date [7][8]. Risk Considerations - The company has highlighted that the total amount of guarantees exceeds 100% of its audited net assets, indicating a significant risk exposure [2][13].