ENN Ecological's 2025 guarantees highlight high debt levels

ENN Ecological Holdings provided an update on its estimated guarantees for fiscal year 2025, revealing that its total external guarantee balance, including those for subsidiaries, reached 24.153 billion yuan as of August 31, 2025. This amount represents 102.92% of the company's net assets as audited at the end of 2024. The guarantees are within the scope approved by the board and shareholders for up to 36 billion yuan for 2025.

Specific guarantees issued in August 2025 include 100 million yuan for ENN New Energy (Zhejiang) Energy Trading Co., Ltd., 80 million yuan for ENN (Guangxi) Energy Sales Co., Ltd., and 213.09 million yuan for ENN Commercial Factoring Co., Ltd. Notably, ENN New Energy (Zhejiang) Energy Trading Co., Ltd. exhibits an asset-liability ratio of 230.92% as of June 30, 2025, with total assets of 943.31 million yuan and total liabilities of 2.1783 billion yuan, and a negative net asset position of -1.23499 billion yuan.

The company states that these guarantees support the normal operational and financing needs of its subsidiaries and joint ventures. While no overdue guarantees have been reported, the high proportion of guarantees to net assets and the elevated debt levels of some guaranteed subsidiaries present a notable financial risk, which the company advises investors to carefully consider.