Liaoning Chengda subsidiary to guarantee associate hospital loan

Liaoning Chengda Co., Ltd. announced that its wholly-owned subsidiary, Liaoning Chengda Medical Services Management Co., will provide a guarantee of up to 60 million yuan for a loan obtained by its associate, Chengda Hospital (Dalian) Co., Ltd. Chengda Hospital is seeking a total of 400 million yuan in fixed asset loans and comprehensive credit from Dalian Bank to replace existing loans and supplement working capital. Chengda Medical holds a 15% equity stake in Chengda Hospital.

The guarantee, structured as a joint and several liability and an equity pledge, aligns with Chengda Medical's ownership percentage. Other shareholders and the actual controller of Chengda Hospital are also providing proportional guarantees. The transaction was approved by Liaoning Chengda's board of directors and independent directors, with the resolution set for shareholder approval.

As of the announcement date, Liaoning Chengda and its holding subsidiaries have approved external guarantees totaling 7.066 billion yuan, representing 24.12% of the company's most recent audited net assets. Chengda Hospital is described as having good credit standing.