Juhua Chemical guarantees subsidiary debt amidst expansion

Zhejiang Juhua Co., Ltd. (Juhua Chemical) has announced a series of financial guarantees for its controlled subsidiaries, Zhejiang Jinju Chemical Co., Ltd. (Jinju Company) and Gansu Juhua New Materials Co., Ltd. (Gansu Juhua). Jinju Company received new guarantees totaling CNY 5,475.80 million, bringing its total guaranteed balance to CNY 67,834.16 million, within pre-approved limits. Gansu Juhua received a new guarantee of CNY 7,000 million, making its total guaranteed balance CNY 7,000 million, also within anticipated limits.

These guarantees are designed to support the subsidiaries' daily operations and development needs, aligning with company strategy and without adverse impact on Juhua Chemical's overall financial health. As of the announcement date, the total outstanding external guarantees by Juhua Chemical and its controlled subsidiaries amounted to CNY 76,891.98 million. This figure represents 4.01% of Juhua Chemical's net assets as of the end of 2024, with no overdue guarantees reported.

The guarantees are structured as joint and several liability guarantees, with varying terms and beneficiary banks. The board of directors approved these measures, also authorizing the general manager to sign related agreements and adjust guarantee specifics based on market conditions and subsidiary needs, provided they remain within the approved limits.