Wolong Electric extends $2,500m guarantee to Hong Kong subsidiary

Wolong Electric Group Co., Ltd. announced on September 9, 2025, that it signed a maximum guarantee contract with Standard Chartered Bank (Hong Kong) Limited on September 8, 2025. This agreement provides a guarantee of up to USD 2,500 million for its wholly-owned subsidiary, Hong Kong Wolong Holding Group Co., Ltd. The total actual guarantee balance for Hong Kong Wolong, including this new commitment, now stands at RMB 261,434.25. The guarantee, a joint and several liability, is set to expire three years after the latest maturity date of any financing utilized within the guarantee period, which runs from September 19, 2025, to September 18, 2026.

Hong Kong Wolong's financial health shows a high asset-liability ratio. As of June 30, 2025, its total assets were RMB 785,251.57, with total liabilities of RMB 647,452.33, resulting in an asset-liability ratio of 82.45%. For the first half of 2025, the subsidiary recorded operating income of RMB 309,172.10 and a net profit of RMB 7,643.84.

This guarantee aligns with a resolution passed at Wolong Electric's 14th meeting of the Ninth Board of Directors on April 24, 2025, and approved by the 2024 Annual General Meeting, which authorized up to RMB 100,000 million in guarantees for subsidiaries. As of the announcement date, the total external guarantees provided by Wolong Electric and its subsidiaries amount to RMB 295,537.15, representing 29.45% of the parent company's net assets as of the 2024 audited figures. There are no overdue or illegal guarantees.