CITIC Heavy Industries guarantees subsidiary's bank facilities

CITIC Heavy Industries has issued a 100,000 yuan performance bond for its wholly-owned subsidiary, CITIC Heavy Industries Engineering Technology Co., Ltd. (Engineering Company), with China Merchants Bank Luoyang Branch. This latest guarantee, dated September 2025, forms part of the company’s previously approved 2024 annual shareholder meeting’s guarantee limit for wholly-owned subsidiaries. As of September 30, 2025, CITIC Heavy Industries' total outstanding guarantee balance for the Engineering Company stands at 242,138,200 yuan.

The Engineering Company, with a registered capital of 400,000,000 yuan, reported total assets of 447,478,100 yuan and total liabilities of 325,408,900 yuan as of June 30, 2025, resulting in a debt-to-asset ratio exceeding 70%. The company posted a net loss of 18,566,600 yuan for the first half of 2025. Investors are cautioned to note the subsidiary's asset-liability ratio.

As of September 30, 2025, CITIC Heavy Industries' total external guarantee amount, including its controlled subsidiaries, is 2,435,560,000 yuan, representing 26.93% of its most recent audited net assets. The actual outstanding guarantee amount for entities within the consolidated financial statement scope is 283,054,500 yuan, which is 3.13% of its latest audited net assets. The company has overdue external guarantees amounting to 1,255,600,000 yuan for non-consolidated entities, equal to 1.39% of its net assets.