Luoyang Molybdenum board approves up to 55 bn yuan guarantee plan

Luoyang Molybdenum Co., Ltd. has announced a plan to provide guarantees totaling up to 29 billion yuan to its wholly-owned subsidiaries. This plan, approved by the 2024 annual general meeting of shareholders on May 30, 2025, authorizes the company to directly or indirectly offer guarantees to other wholly-owned or controlled subsidiaries. The total guarantee limit, including for both wholly-owned and controlled subsidiaries, will not exceed 55 billion yuan.

The guarantees primarily cover loans from domestic and international financial institutions, bond issuance, bank acceptance bills, and various other financial instruments and liabilities. A portion of the guaranteed entities have a debt-to-asset ratio exceeding 70%, and Luoyang Molybdenum's total outstanding external guarantees currently represent 21.41% of its latest audited net assets.

As of the disclosure date, the company has no overdue guarantees. The guarantees are considered essential for the normal production and operation of the company and its subsidiaries, contributing to stable and continuous development. The guaranteed parties are reported to have good credit standing, indicating that the overall guarantee risk is manageable.