Neoway unit guarantees $5.5m for parent company financing

Shenzhen Neoway Technology (SSE: 688159) announced that its wholly-owned subsidiary, Dongguan Neoway Communication Technology, will provide a joint liability guarantee for a RMB 40 million (approximately $5.5 million USD) financing facility obtained by the parent company from Bank of Jiangsu's Shenzhen branch. The guarantee period extends three years beyond the debt's maturity. Dongguan Neoway's internal shareholder meeting has already approved the guarantee. The company stated that this guarantee is within a controllable risk range, supports the parent company’s operations, and does not harm the interests of the company or its shareholders. As of September 30, 2024, Neoway Technology's total assets were RMB 193.55 million and net assets were RMB 84.20 million.