Huatai Securities subsidiary issues CNH 385m notes

Huatai Securities Co., Ltd. announced that its indirectly wholly-owned subsidiary, Huatai International Financial Holdings Company Limited (Huatai International), through its subsidiary Huatai International Finance Company Limited (Huatai International Finance), will issue CNH 385 million in medium-term notes. This issuance is part of a CNH 30 billion medium-term note program established in October 2020. The notes will be guaranteed by Huatai International, bringing the total outstanding guarantee amount to $864 million (including this issuance).

The issuance aims to support business development and supplement working capital. Huatai International Finance, as the issuer, is a special purpose vehicle (SPV) and a subsidiary of Huatai International. The company indirectly holds 100% equity in Huatai International Finance through Huatai International. Although Huatai International Finance's asset-liability ratio exceeds 70%, the company believes the guarantee risk is controllable due to its full ownership and ability to monitor its solvency.

As of the announcement date, Huatai Securities and its controlling subsidiaries' total external guarantees amount to CNH 402.44 billion, all provided to subsidiaries. Guarantees to controlling subsidiaries specifically total CNH 340.06 billion, representing 21.00% and 17.74% of the company's most recently audited net assets, respectively. There are no overdue guarantees or guarantees provided to controlling shareholders, actual controllers, or their related parties.