Oppein Home guarantees subsidiary's $200m loan for business growth

Oppein Home Group Co. will provide a guarantee for its subsidiary, Jiangsu Wuxi Oppein Integrated Home Co. (Wuxi Oppein), for a credit facility with China Merchants Bank Wuxi Branch. The guarantee, totaling RMB 200,000,000, is intended to support Wuxi Oppein's ongoing business development. As of the announcement date, the actual outstanding guarantee balance for Wuxi Oppein stands at RMB 146,740,000. This move falls within pre-approved guarantee limits set by Oppein Home Group's 2025 First Extraordinary General Meeting.

The guarantee structure involves Oppein Home Group assuming joint and several liability for all debts owed by Wuxi Oppein under the credit agreement. No counter-guarantee has been provided by the subsidiary. Wuxi Oppein, a wholly-owned subsidiary established in 2014 with a registered capital of RMB 50,000,000, operates in various sectors including furniture manufacturing, home appliance sales, and interior decoration.

As of November 20, 2025, the total approved external guarantees by Oppein Home Group and its controlled subsidiaries amount to RMB 2,000,000,000, representing 104.97% of the company's latest audited net assets. The actual outstanding external guarantee balance is RMB 290,510,000, which is 15.25% of the net assets. The company notes that this particular guarantee is being provided to a unit with a debt-to-asset ratio exceeding 70% in the latest audited period, signaling a higher risk profile for this transaction.