CSSC Science & Technology boosts subsidiary support with CNY 431.8bn in guarantees

CSSC Science & Technology announced a cumulative guarantee limit of up to CNY 431,804.71 million for 2026, including financing guarantees of CNY 273,322.73 million and bank guarantees of CNY 158,481.98 million, supporting its subsidiaries and their sub-subsidiaries. This comprehensive backing aims to enhance operational efficiency and facilitate financing for working capital and project loans. Notably, some recipients have asset-liability ratios exceeding 70%, indicating higher risk, and no counter-guarantees are in place for these external guarantees.

The company's subsidiary, Xiamen Dual-Ruijie New Material Technology Co., Ltd., will engage in non-recourse accounts receivable factoring with CSSC Commercial Factoring Co., Ltd. for up to CNY 1 billion. This related-party transaction, approved by the board and awaiting shareholder approval, seeks to optimize cash flow and manage credit risk. Additionally, CSSC Science & Technology will renew its financial services agreement with CSSC Financial Co., Ltd., allowing daily deposit balances up to CNY 14 billion and loan balances up to CNY 13 billion for 2026.

In a separate development, CSSC Science & Technology provided an update on its subsidiary's external investment, noting a change in the Tongyu Phase I project. CSSC Wind Power Green Power (Tongyu) Co., Ltd. will no longer proceed with its 100,000 kW wind power project due to revised investment expectations, while CSSC Wind Power New Energy Investment (Tongyu) Co., Ltd. will continue with its 200,000 kW project as planned.