Luoyang Molybdenum board approves 101 bn yuan guarantee plan

Luoyang Molybdenum Co., Ltd. announced a comprehensive external guarantee plan, approved on May 30, 2025, to provide guarantees totaling up to 101 billion yuan (or equivalent in foreign currency) for its wholly-owned and controlled subsidiaries. This initiative is intended to support the normal production and operations of its subsidiaries and facilitate the company's stable, continuous development and overall strategic growth. The plan covers various financial activities, including loans, bond issuances, and trade instruments, with an approved guarantee quota of 55 billion yuan.

The guarantee plan allocates 25 billion yuan for subsidiaries with a debt-to-asset ratio exceeding 70% and 30 billion yuan for those below 70%. The validity of the guarantee quota extends from the approval date of the 2024 annual general meeting until the 2025 annual general meeting. As of the disclosure date, the total external guarantee amounted to 16.711 billion yuan, with 16.054 billion yuan designated for wholly-owned subsidiaries, representing 23.53% of the company's latest audited net assets.

The company confirmed no overdue guarantees as of the announcement date and noted that while some guaranteed entities have debt-to-asset ratios exceeding 70%, the overall credit standing of the guaranteed parties is good, and the guarantee risk is deemed controllable. The guarantees are exclusively for wholly-owned subsidiaries.