Hongcheng Environment adjusts guarantees for subsidiaries, bolsters Liaoning operations

Jiangxi Hongcheng Environment (Hongcheng Environment) has adjusted its guarantee limits, providing a 45 million yuan guarantee for its controlling subsidiary, Liaoning Hongcheng Environmental Protection Co. This move, approved by the company's board and shareholders in April and May 2025, aims to meet the subsidiary's daily operational and development requirements. The guarantee falls within a previously approved overall guarantee limit of 2.08 billion yuan for subsidiaries.

The adjustment increases the guarantee limit for Liaoning Hongcheng Environmental Protection Co. by 50 million yuan, raising its total from 30 million yuan to 80 million yuan. Concurrently, the limit for Fengcheng Hongtou Environmental Protection Co. was reduced by 50 million yuan, from 133.23 million yuan to 83.23 million yuan. This reallocation is within the scope of the 2024 annual shareholders' meeting approval and does not require further board or shareholder review.

As of the announcement date, Hongcheng Environment's total outstanding guarantees amount to 3.44 billion yuan (including the current guarantee), representing 36.66% of its most recent audited net assets. All guarantees are provided to subsidiaries, with 72.819 million yuan for wholly-owned subsidiaries and 271.524 million yuan for controlling subsidiaries. None of these involve entities outside the consolidated financial statements or are overdue.