Sailun Group adjusts guarantees for US subsidiaries, reallocates internal limits

Sailun Group Co., Ltd. has updated its external guarantee arrangements, approving a provision of $50.10m in standby letters of credit for its wholly-owned subsidiaries, Sailun Tire Americas Inc. and Sailun Tire (USA) Corp. This move, facilitated through an agreement with JPMorgan Chase Bank (China) Co., Ltd. Shanghai Branch, aims to secure credit lines from JPMorgan Chase Bank, N.A. and its affiliates for the US-based entities. The standby letters of credit will have a term not exceeding 13 months and do not involve counter-guarantees.

The adjustment falls within the scope of the 176bn yuan total guarantee limit approved at the company’s Sixth Board of Directors’ Twenty-First Meeting and the 2024 First Extraordinary General Meeting. This includes a reallocation of guarantee quotas, reducing the limit for Sailun Hong Kong and its subsidiaries by 5bn yuan to 85bn yuan, while increasing the limit for Sailun (Shenyang) Tire Co., Ltd. and its subsidiaries by 5bn yuan to 11bn yuan.

As of the announcement date, Sailun Group's total external guarantees amount to 204.14bn yuan, representing 104.64% of its latest audited net assets. The company confirms no overdue external guarantees and has not provided guarantees for its actual controllers or related parties.