Xinjiang Sayram adjusts guarantees amid high debt, reallocates quotas

Xinjiang Sayram Modern Agriculture Co. (SSE:600540) has provided an update on its guarantee plans, disclosing a total guarantee amount of 86,890 million yuan for its subsidiaries, with an actual outstanding balance of 142,940 million yuan, including the latest adjustments. The company’s total external guarantees, including those from its holding subsidiaries, exceed 100% of its latest audited net assets, reaching 721.14%. The actual outstanding guarantee balance accounts for 357.91% of the latest audited net assets.

The adjustments primarily involve reallocating guarantee quotas among several holding subsidiaries, including Xinjiang Xinsai Cotton Industry Co. (increasing by 47,000 million yuan to 77,000 million yuan) and Xinjiang Xinsai Bio-Protein Technology Co. (decreasing by 16,000 million yuan to 38,000 million yuan). Other subsidiaries, such as Double River Xinsai Bohui Agricultural Development Co. and Xinsai Precision Textile Co., also experienced notable changes. The company highlighted that several subsidiaries, including Hutubi Kangrui Cotton Processing Co. and Hutubi Tianyuan Cotton Industry Co., have asset-liability ratios exceeding 70%.

The board approved these adjustments within the previously estimated total guarantee limit of 350,000 million yuan for 2025, which was set to support subsidiaries' operational and capital needs. The company confirmed no overdue external guarantees or guarantees provided to controlling shareholders or related parties.