CMST Development guarantees subsidiary’s $150m credit facility

CMST Development Co., Ltd. recently executed a guarantee for its wholly-owned subsidiary, China Logistics Baodi Co., Ltd., for a comprehensive credit facility from Bank of Communications Tianjin Branch. The guarantee, amounting to RMB 150 million, covers China Logistics Baodi's daily operational needs. This decision aligns with a proposal approved by the company's board and shareholders in April and May 2025, respectively.

As of the disclosure date, CMST Development’s total external guarantees amount to RMB 350 million, exclusively for its wholly-owned subsidiary, China Logistics Baodi. This represents 2.36% of the company's net assets from the latest audited period and currently has no overdue guarantees. The company asserts that this support contributes to the subsidiary's stable operations and long-term development, reflecting sound financial management.

The guarantee, structured as a joint and several liability, has a term linked to the performance period of the principal debt, extending three years beyond its maturity. The scope of the guarantee includes the principal, interest, penalties, and all related costs for enforcing the creditor’s rights. CMST Development views this as a necessary and reasonable measure to support its subsidiary’s business, demonstrating confidence in its operations.