Xinjiang Sayram subsidiary loan guarantee reaches 195% of net assets

Xinjiang Sayram Modern Agriculture Co., Ltd. has provided a working capital loan guarantee of 8 million yuan for its controlling subsidiary, Double River Xinsai Juxin Calcium Industry Co., Ltd. The guarantee is a joint liability for a term of three years. This latest transaction brings the cumulative actual guarantee balance for the subsidiary to 8 million yuan, inclusive of this new guarantee. Notably, Double River Xinsai Juxin Calcium Industry Co., Ltd. is 51% owned by Xinjiang Sayram Modern Agriculture.

The company's board and supervisory board, followed by the 2024 annual general meeting, approved a total guarantee limit of up to 3.5 billion yuan for 2025. This allows for internal adjustments and an upward fluctuation of up to 15% without further approvals. The current guarantee falls within this pre-approved limit. As of the disclosure date, the total external guarantees by the company and its controlling subsidiaries amount to 3.5 billion yuan, with an actual outstanding balance of 948.21 million yuan.

This actual outstanding balance represents 721.14% of the company's latest audited net assets and 195.37% of the controlling subsidiary's net assets, highlighting a substantial level of financial exposure. Despite the high ratio, the company states that it has full control over the subsidiary's operations, and the subsidiary's business is currently normal, keeping the guarantee risk manageable. The company has no outstanding overdue external guarantees or guarantees provided to controlling shareholders, actual controllers, or their related parties.