Xiangcai Co. increases guarantee for petrochemical subsidiary

Xiangcai Co. Ltd. announced a guarantee for its wholly-owned subsidiary, Zhejiang Xiangxin Petrochemical Co. Ltd., in an agreement with Ningbo Tongshang Bank Co. Ltd. The current guarantee amount is RMB 50 million, contributing to a total outstanding guarantee of RMB 100 million for the subsidiary. This falls within the previously approved guarantee limits.

The company's board and shareholders had approved a total guarantee amount of up to RMB 980 million for subsidiaries, with the current transaction aligning with these resolutions. As of the announcement date, Xiangcai Co. Ltd. and its subsidiaries' total external guarantees amount to RMB 980 million, all provided to controlled subsidiaries. The actual outstanding guarantee balance, excluding the latest transaction, is RMB 231.46 million.

This outstanding guarantee represents 1.96% of the company's net assets as per the latest audited figures. The company confirmed no overdue external guarantees and believes the risk is controllable given Zhejiang Xiangxin Petrochemical Co. Ltd.'s sound asset quality and strong financial condition.