Angel Yeast guarantees subsidiary loan for operational expansion

Angel Yeast Co., Ltd. (stock code: 600298) will provide a RMB100 million guarantee for its controlled subsidiary, Angel Yeast (Yichang High-tech Zone) Co., Ltd., which recently secured a RMB100 million loan from the Export-Import Bank of China, Hubei Branch. This guarantee aims to meet the subsidiary's operational capital requirements and support its sustainable development. The subsidiary's asset-liability ratio exceeds 70%, necessitating this type of guarantee.

The guarantee was approved during the company's ninth board of directors meeting on April 8, 2025, and the 2024 annual general meeting on April 30, 2025. The company's total external guarantee limit for 2025, primarily for controlled or wholly-owned subsidiaries and their sub-subsidiaries, is RMB3 billion. The current guarantee falls within this approved limit, specifically within the RMB1.4 billion designated for subsidiaries with an asset-liability ratio above 70%.

As of the announcement date, Angel Yeast's total external guarantees, including those for its controlled subsidiaries, amount to RMB3.06 billion, representing 28.26% of the company's latest audited net assets. The company states that the subsidiary has strong repayment capabilities, making the guarantee risk controllable and beneficial for both the company and its shareholders.