Wintime Energy guarantees $5 bn in loans for power subsidiaries

Wintime Energy Group Co., Ltd. has disclosed guarantees totaling approximately 5 billion yuan for two subsidiaries. Zhangjiagang Shazhou Power Co., Ltd. received a guarantee of 3 billion yuan for working capital loans, with an outstanding balance of 316.63 billion yuan including the current guarantee. Similarly, Zhangjiagang Huaxing Power Co., Ltd. received a guarantee of 2 billion yuan, with an outstanding balance of 64.39 billion yuan. These guarantees facilitate various short-term loans from rural commercial banks and Suzhou Bank.

As of the announcement date, the cumulative guarantee amount provided by the company and its subsidiaries stands at 1,947.21 billion yuan. This represents 41.30% of Wintime Energy's net assets as per the latest audited financial statements. The guarantees are primarily for operating expenses and are backed by counter-guarantees from Wintime Energy and its wholly-owned subsidiary, Jiangsu Huachen Power Group Co., Ltd., along with pledges of electricity revenue rights.

The company's board has approved these guarantees, acknowledging the need for financing to support the operational development of its subsidiaries. The financial health of the guaranteed entities shows that both Zhangjiagang Shazhou Power and Zhangjiagang Huaxing Power have asset-liability ratios exceeding 70%, indicating the need for such support.