HMT issues RMB 36.1bn in guarantees for subsidiaries' loans

HMT (Xiamen) New Technical Materials Co. (HMT) has issued guarantees for two of its wholly-owned subsidiaries, Dongyang Huatan New Materials Co. and HMT (Dongyang) New Materials Co., totaling RMB 36.1 billion. HMT provided a guarantee of RMB 23 billion for Dongyang Huatan's loan with Bank of China, and RMB 13.1 billion for HMT (Dongyang)'s loan with Industrial Bank. Dongyang Huatan also provided a counter-guarantee in the form of a mortgage on 86,668 square meters of land.

These guarantees fall within HMT's 2025 estimated annual guarantee limit of up to RMB 500 million for its subsidiaries, approved by the board on April 26, 2025. With these new commitments, HMT's total outstanding external guarantees, including a previously disclosed RMB 7.5 billion guarantee for HMT (Haiphong) New Materials Co., now amount to RMB 43.6 billion, representing 11.51% of the company's latest audited net assets.

The board of directors stated that these guarantees are necessary and reasonable to meet the operating needs of its core subsidiaries, which are financially stable with no significant defaults or litigation. This strategy aims to enhance capital efficiency and support the sustained development of HMT’s main business operations.