Xin'an Chemical Group reports $2.2bn in guarantees for subsidiaries

As of November 30, 2025, Zhejiang Xin'an Chemical Industrial Group and its controlled subsidiaries have provided total guarantees amounting to 2.22584 billion yuan for their controlled subsidiaries. This figure represents 17.88% of the company's net assets attributable to shareholders as of the 2024 audited financial statements. The guarantees are primarily aimed at supporting the business development and daily operating capital needs of these subsidiaries, including entities like Fujian Xin'an, Hefei Xingyu, and Gansu Xibu Xinyu Chemical.

The guarantees are considered necessary and reasonable, as the company maintains control over the guaranteed entities, whose current operating conditions are favorable, thus mitigating significant risk. The board of directors has assessed the subsidiaries' ability to repay their debts, ensuring the guarantees align with routine operational requirements and do not negatively impact shareholder interests.

All guarantees are internal, between the parent company and its controlled subsidiaries, with no external guarantees currently outstanding. The total estimated guarantee amount approved by the shareholders' meeting for 2025, from which the current guarantees are drawn, is 500 million yuan, with 222.584 million yuan already utilized, leaving 277.416 million yuan available.