Linyang Energy's guarantees exceed 50% net asset threshold

Jiangsu Linyang Energy Co., Ltd. (Linyang Energy) has announced several external guarantees for its subsidiaries, totaling RMB 135.80 bn, which represents 86.69% of the company's 2024 audited net assets. The guarantees include $15.50 m for Singapore Linyang Energy Technology Co., Ltd., RMB 11.20 bn for Jiangsu Linyang New Energy Technology Co., Ltd., RMB 18.00 bn for Jiangsu Linyang Electric Power Services Co., Ltd., and RMB 11.00 bn for Jiangsu Linyang Energy Storage Technology Co., Ltd. These guarantees aim to support the subsidiaries' operational funding requirements and long-term development.

Notably, the company's total external guarantee amount, including these recent commitments, has exceeded 50% of its latest audited net assets. Guarantees for entities with a debt-to-asset ratio exceeding 70% have also been provided, specifically for Jiangsu Linyang New Energy Technology and Jiangsu Linyang Electric Power Services, both wholly-owned subsidiaries with such ratios.

The board of directors approved these guarantees, deeming them essential for the company's overall interests and strategic development. The company asserts that the guarantees for its consolidated subsidiaries pose manageable risks due to real-time cash flow monitoring and are not expected to harm the company's sustained operations or shareholder interests. As of the announcement date, Linyang Energy has no overdue external guarantees.