Shanghai Electric seeks shareholder approval for €90m guarantee, RMB 10bn debt issuance

Shanghai Electric Group Co., Ltd. (Shanghai Electric) is seeking shareholder approval for a €90 million borrowing guarantee for its wholly-owned subsidiary, Shanghai Electric (Hong Kong) Investment Management Co., Ltd. The guarantee, with a term not exceeding three years, supports Shanghai Electric Hong Kong's production and operations, as its asset-liability ratio exceeds 70%. The board of directors approved this resolution on August 29, 2025. The guarantee amount represents 1.52% of Shanghai Electric's net assets as of the most recent period.

Additionally, Shanghai Electric plans to apply for registration and issuance of debt financing instruments totaling RMB 10 billion with the National Association of Financial Market Institutional Investors. These instruments, which include medium-term notes, short-term financing bills, ultra-short-term financing bills, and directed notes, will be issued within two years from the approval date and used to replace existing debt and other approved purposes, with a maximum term of ten years.

The company's financial controller will be authorized to manage the issuance process, including determining specific issuance plans, signing relevant agreements, and handling information disclosure. As of now, Shanghai Electric and its subsidiaries' total external guarantees amount to RMB 1,422,851.5 thousand, representing 26.8% of the company's 2024 audited net assets attributable to shareholders, with no overdue external guarantees.