Anyang Steel to guarantee subsidiaries with RMB 700m

Anyang Iron and Steel Group (SSE:600569) announced plans to provide significant financial backing to two of its key subsidiaries. The company will guarantee up to RMB 200 million for Henan Angang Southern Electromagnetic New Materials Technology Co., Ltd. This guarantee supports a financing lease arrangement with Chongqing XinYu Financial Leasing for equipment related to the subsidiary's second-phase project. Additionally, Anyang Steel intends to provide a guarantee of up to RMB 500 million for Henan Angang Zhoukou Iron and Steel Co., Ltd. to secure working capital loans from the Industrial and Commercial Bank of China. Both guarantees are subject to shareholder approval. As of the announcement date, the total amount of external guarantees provided by Anyang Steel and its holding subsidiaries is RMB 453.463 million, representing 76.85% of the company’s latest audited net assets and 85.33%, with an additional 503.463 million provided to its holding subsidiary. Anyang Steel states that there are no overdue external guarantees, but cautions investors that the total amount of guarantees exceeds 50% of the company's net assets.