Juhua Chemical guarantees subsidiary debt, optimistic on fluorochemical market

Zhejiang Juhua has issued guarantees totaling RMB 2,965.68m and $92.5m for its controlled subsidiaries, Zhejiang Jinju Chemical Co., Ltd. and Ningbo Juhua Chemical Technology Co., Ltd., respectively. These guarantees, including prior commitments, bring the total outstanding guarantee balance to RMB 68,324.79m, representing 3.56% of the company's latest audited net assets. The board approved these guarantees, which are intended to support the subsidiaries' operational needs and project financing, aligning with the company's overall interests.

During a recent investor reception, Zhejiang Juhua expressed optimism regarding the fluorochemical market, citing sustained growth in demand from the air conditioning and automotive sectors, particularly for new energy vehicles. The company anticipates continued market expansion globally and is focusing on research and development for fourth-generation refrigerants like HFO-1234yf and HFO-1233zd, with HFO-1234yf production capacity reaching 10,000 tons/year. Zhejiang Juhua also highlighted its leading position in fluorinated polymer materials and its robust strategies for addressing market dynamics and competitive pressures.

The company's strategic initiatives include enhancing its fluorinated polyether and PDO projects, with the latter already in production. Zhejiang Juhua reiterated its commitment to innovation, product diversification, and optimizing operational efficiency to ensure high-quality development. The total external guarantees by Zhejiang Juhua and its controlled subsidiaries currently amount to RMB 68,324.79m, all provided to controlled subsidiaries, with no overdue guarantees reported.