Hainan Rubber guarantees $80m in loans for high-debt subsidiary China Rubber

Hainan Rubber has provided additional guarantees for its wholly-owned subsidiary, China Rubber Technology Group Company Limited. The company issued a RMB 56,742.40 guarantee for China Rubber, corresponding to $80 million across two separate loan agreements. This includes a $40 million loan from Ping An Bank Hong Kong Branch and another $40 million loan or equivalent in RMB/HKD from Nanyang Commercial Bank Limited, each with a one-year term.

These guarantees fall within the previously approved RMB 700 million guarantee limit for China Rubber for 2025, which was authorized by the board of directors and the annual general meeting. As of the announcement date, the total outstanding external guarantees provided by the company and its controlled subsidiaries, including the current transaction, amount to RMB 530,586.40.

This cumulative guarantee represents 53.89% of Hainan Rubber's most recently audited net assets attributable to the parent. China Rubber's recent financial performance indicates a high asset-liability ratio, exceeding 70% in its latest period. As of December 31, 2024, China Rubber reported total assets of RMB 1,444,979.56 and total liabilities of RMB 1,325,384.63, with an asset-liability ratio of 91.72% and a net loss of RMB 45,406.39 for the year.