Luoyang Molybdenum to provide up to 1.4 bn yuan in guarantees to subsidiaries

Luoyang Molybdenum Co., Ltd. announced its 2025 external guarantee plan, approved by its 2024 annual general meeting. The plan authorizes the company to provide guarantees of up to 1.4 bn yuan to its wholly-owned subsidiaries. This is part of a broader authorization allowing for guarantees totaling up to 55 bn yuan (or equivalent in foreign currency) for its wholly-owned and controlling subsidiaries.

The guarantees cover various financial activities, including loans, bond issuance, and other forms of liabilities. As of the announcement date, the company has no overdue guarantees. Total outstanding external guarantees amount to 16.542 bn yuan, with 15.733 bn yuan specifically for wholly-owned subsidiaries, representing 23.29% of the company's latest audited net assets.

The company emphasizes that these guarantees are essential for the normal operation and stable development of its subsidiaries. All beneficiaries are wholly-owned subsidiaries with good credit standing, indicating manageable overall risk. The authorization is valid until the 2025 annual general meeting.