Xinhu Zhongbao approves subsidiary guarantees, high-tech manufacturing push

Xinhu Zhongbao has announced plans to provide guarantees totaling up to RMB26.8 bn for 31 holding subsidiaries and 5 joint ventures/associate companies. This includes RMB20.3 bn for holding subsidiaries and RMB6.5 bn for joint ventures/associate companies, valid for twelve months following shareholder approval.

Separately, the company will acquire a 95.4559% stake in Guangdong Xindao Rare Material Technology Co., Ltd. through a share issuance, with a capital raise of up to RMB3 bn from private investors. This acquisition is a strategic move to enter the high-end advanced materials manufacturing sector, which the board believes will enhance the company's capabilities and optimize its business structure.

The board also approved the company's 2025 semi-annual report, showing total assets of RMB98.139 bn and net profit attributable to shareholders of RMB259.81 m. The share purchase and guarantee proposals will be submitted for shareholder approval at the third extraordinary general meeting on September 15, 2025. The company's stock will participate in online voting for this meeting.