Atlantic Welding unit to guarantee subsidiary's loan

Sichuan-based Atlantic China Welding Consumables (SSE:600558) announced it will provide a guarantee for a RMB 20 million loan (approximately $2.78 million USD) to its holding subsidiary, Jiangsu Atlantic Welding Materials Co., Ltd. The guarantee, effective from February 10, 2025, to October 30, 2025, will help meet Jiangsu Atlantic's working capital needs. As of the announcement date, Atlantic's existing guarantee balance for Jiangsu Atlantic totaled RMB 257,000. The company stated that this guarantee falls within the approved 2024 annual budget for subsidiary guarantees. No counter-guarantee was provided. According to the announcement, total external guarantees, including this one, account for 5.32% of Atlantic's latest audited total assets and 7.51% of net assets. The company has no overdue guarantees.