Gemdale guarantees subsidiary acquisition, streamlining core business

Gemdale Corporation announced a performance guarantee for its subsidiaries Nanjing Jincheng Real Estate Development Co., Ltd., Shenzhen Gemdale Education Co., Ltd., and Nanjing Gemdale Future School. This guarantee, capped at RMB 200 million, supports the acquisition by Shanghai Dongyusen Education Technology Co., Ltd., covering pre-delivery debts, development-related liabilities, and legal costs. The guarantee period is three years from the announcement date.

This action is part of Gemdale's strategy to streamline its core business and activate existing assets. Gemdale's total external guarantees amount to RMB 18.28 billion, representing 30.96% of its net assets as audited in 2024. The guarantees for other controlled subsidiaries total RMB 13.069 billion, with an additional RMB 5.211 billion for associated and joint ventures. There are no overdue guarantees.

The guarantee falls within the annual guarantee limit approved by the company's board of directors and the 2024 Annual General Meeting, with the total new guarantee limit not exceeding RMB 25 billion. The board deemed the guarantee necessary for the transaction's smooth progression and manageable risk, aligning with the company's overall interests.