Shanxi Lanhua borrowings surge past 20% of prior net assets

Shanxi Lanhua Sci-Tech Venture reported a significant increase in borrowings. As of May 31, 2025, cumulative new borrowings since the end of 2024 totaled CNY6.673 billion, representing 41.80% of the CNY15.964 billion net assets recorded at the end of 2024. A substantial portion, CNY5.173 billion, stems from new bank loans, accounting for 32.40% of the 2024 net assets. These loans primarily financed the acquisition of exploration rights for the Sitou block in Yangcheng County, Jincheng City, Shanxi Province, for which the company secured rights on March 26, 2025, at a price of CNY6.9494 billion. An additional CNY1.5 billion was raised through the issuance of non-financial enterprise debt financing instruments, representing 9.40% of the 2024 year-end net assets. The company assures that these borrowings are for normal business development, resource procurement, and operational needs, with measures in place to ensure timely repayment of principal and interest, thereby minimizing any adverse impact on its solvency.