Yasheng Group guarantees subsidiaries' operations with RMB 79bn

Gansu Yasheng Industrial Group (SSE:600108) announced the provision of a total of RMB 79,033.90 million in guarantees for its five wholly-owned subsidiaries. This amount represents 18.45% of the company's latest audited net assets. The guarantees are intended to support the subsidiaries' normal business operations and expansion. All guarantees are for wholly-owned subsidiaries, with no guarantees provided to controlling shareholders, actual controllers, or their related parties, and no overdue guarantees.

The guarantees include RMB 1,000 million for Gansu Tianrun Potato Industry Co., Ltd. and RMB 1,000 million for Gansu Dayou Agricultural Technology Co., Ltd., both with Lanzhou Bank. Additionally, RMB 258 million was provided for Shandan County Yuxing Flour Industry Co., Ltd. via Gansu Shandan Rural Commercial Bank.

For Gansu Xingnong Chili Industrial Development Co., Ltd., guarantees totaled RMB 6,000 million, split between Bank of Communications and Agricultural Development Bank of China. Lastly, RMB 1,700 million was guaranteed for Gansu Yasheng Pastoral Grass Industry Group Co., Ltd. through China Merchants Bank. All guarantees are joint and several liability guarantees with a three-year term and no counter-guarantees.