Skshu Paint expands guarantees for dealers, subsidiaries

Skshu Paint Co. Ltd. (SSE:603737) announced a new guarantee for non-affiliated dealers up to RMB 40 million through a cooperation agreement with Fujian Huatong Bank Co. Ltd. The current outstanding guarantee balance for dealers is RMB 41.44 million, aligning with a previously approved RMB 350 million guarantee limit for financing institutions.

The company is also providing guarantees for its wholly-owned subsidiaries. It has signed a maximum guarantee contract with Ping An Bank Fuzhou Branch for Anhui Skshu Paint Co. Ltd., providing a joint and several liability guarantee of RMB 30 million. A separate maximum guarantee contract with Chengdu Bank Qionglai Branch provides a joint and several liability guarantee of RMB 150 million for Sichuan Skshu Paint Co. Ltd. These guarantees fall within the RMB 9.5 billion total guarantee limit for subsidiaries approved at the 2024 Annual General Meeting.

The total outstanding external guarantees, including those for subsidiaries, amount to RMB 3.2782 billion, representing 122.05% of the company's latest audited net assets. Guarantees for subsidiaries alone total RMB 3.236767 billion, or 120.51% of net assets. All guarantees are within the pre-approved limits and aim to support business development and dealer financing.