Xinjiang Sayram agriculture extends substantial loan guarantees to subsidiaries

Xinjiang Sayram Modern Agriculture announced a total guarantee amount of 360.3m yuan for its subsidiaries, with actual guarantees provided reaching 1.94bn yuan, inclusive of the current guarantees. These guarantees are crucial for the production and operational needs of the subsidiaries. The company has clarified that there are no counter-guarantees in place and no overdue external guarantees.

The total external guarantees, including those for its controlling subsidiaries, currently stand at 3.5bn yuan, with actual outstanding guarantees amounting to 2.09bn yuan. This represents 721.14% of the company's net assets as per the latest audited figures, with actual guarantees being 432.09% of net assets. Xinjiang Xinsai Bio-Protein Technology, Xinjiang Xinsai Cotton Industry, and Double River Xinsai Bohui Agricultural Development all have asset-liability ratios exceeding 70%, indicating a heightened risk for investors.

The guarantees are approved within the scope of the 2025 annual shareholders' meeting and board resolutions, allowing for internal adjustment of guarantee amounts within the approved total of 3.5bn yuan. The company confirmed its full understanding and control over the operations of the guaranteed entities, with current operations being normal, thus mitigating immediate risks.