Sanmei Chemical guarantees $83.3m loan for associate Xinmeihe

Zhejiang Sanmei Chemical Industry Co., Ltd. (Sanmei Chemical) announced it has signed a guarantee contract with the Bank of China Chongqing Changshou Branch. This provides a joint and several liability guarantee for its associate company, Chongqing Xinmeihe Technology Co., Ltd. (Xinmeihe). The guarantee, totaling RMB 83,300,000, is for Xinmeihe's fixed asset loan. Other shareholders of Xinmeihe are also providing guarantees in proportion to their shareholdings.

The guarantee was approved by Sanmei Chemical's board of directors on August 21, 2025, and shareholders on September 8, 2025. It is part of a connected transaction to enhance Xinmeihe's financing capabilities for its operations and project investments. The company's total external guarantees now stand at RMB 70,845,020, representing 11.00% of its latest audited net assets. The guarantee carries no counter-guarantee.

Xinmeihe, an associate company of Sanmei Chemical with the latter holding a 49.00% stake, recorded total assets of RMB 9,144,490 and net assets of RMB 9,000,000 as of June 30, 2025. The guarantee is consistent with Sanmei Chemical's development strategy and is deemed to have controllable risk given the proportional participation of other shareholders.