VV Food & Beverage guarantees $100m for subsidiary operations

VV Food & Beverage Co., Ltd. has provided a guarantee of 100 million yuan for its wholly-owned subsidiary, VV International Trade Co., Ltd., to Ping An Bank Co., Ltd. Nanjing Branch. This guarantee, effective until three years after the main contract's debt fulfillment period, aims to support VV International Trade's operational needs and enhance financing efficiency. The total outstanding guarantee amount, including this transaction, is 376 million yuan.

The guarantee falls within the scope of the 1.45 billion yuan aggregate guarantee limit approved by shareholders at the annual general meeting on May 9, 2025. VV International Trade, established on April 28, 2003, with a registered capital of 100 million yuan, is 90% owned by VV Food & Beverage and 10% by its wholly-owned subsidiary, VV Dairy Co., Ltd.

As of the announcement date, VV Food & Beverage and its controlled subsidiaries have a total outstanding external guarantee amount of 461 million yuan, representing 13.22% of the company's most recently audited net assets. The guarantee for VV International Trade is categorized as a high-risk transaction due to the subsidiary's asset-liability ratio exceeding 70%.