Skshu Paint guarantees RMB 200m for two subsidiaries' credit facilities

Skshu Paint Co., Ltd. recently announced new guarantees for its wholly-owned subsidiaries, Anhui Skshu Paint Co., Ltd. and Shanghai Skshu Waterproof Technology Co., Ltd. The company will provide a maximum guarantee of RMB 120,000,000 for Anhui Skshu Paint's credit facility with Bank of China and RMB 80,000,000 for Skshu Waterproof's credit facility with China Everbright Bank.

As of the announcement date, Skshu Paint's total external guarantees for its subsidiaries amount to RMB 985,000,000, representing 366.72% of the company's latest audited net assets. The total external guarantee balance, including current guarantees, exceeds 100% of the latest audited net assets. Anhui Skshu Paint's actual current guarantee balance is RMB 356,320,000, while Skshu Waterproof's is RMB 99,742,300.

The guarantees are intended to meet the subsidiaries' operational funding needs. The company's board believes these subsidiaries are stable with good credit, making the guarantee risks controllable and not detrimental to the company's or shareholders' interests. The total guarantee amount, including the current transactions, falls within the RMB 9,500,000,000 approved by the 2024 Annual General Meeting.