Linglong Tyre guarantees CNY 164m for subsidiaries' operations

Shandong Linglong Tyre Co., Ltd. (Linglong Tyre) recently announced two new guarantees for its wholly-owned subsidiaries, totaling CNY 164 million. The company guaranteed a CNY 134 million credit line for Jilin Linglong Tyre Co., Ltd. with China Construction Bank, and a CNY 30 million credit line for Guangxi Linglong Tyre Co., Ltd. with Liuzhou Bank Co., Ltd. These guarantees aim to support the subsidiaries' operational needs and strategic development, aligning with the company's overall business strategy.

As of the announcement date, Linglong Tyre's total external guarantees, exclusively for its subsidiaries, amount to CNY 13.27 billion. The actual provided guarantee balance is CNY 3.279 billion, constituting 61.21% and 15.12% respectively of the company's net assets attributable to shareholders as per the latest audited figures.

These guarantees fall within the scope approved by the company's board of directors and the 2024 annual general meeting, eliminating the need for further review. Linglong Tyre states that the financial health and debt-to-asset ratios of the guaranteed subsidiaries remain stable, with no significant changes. The company also confirmed that there are no overdue external guarantees.