Huatai Securities subsidiary issues notes with wholly-owned guarantee

Huatai International Financial Co., Ltd. (Huatai International Financial) issued two tranches of medium-term notes totaling $1.05 bn ($0.55 bn and $0.50 bn respectively) under its existing medium-term note program. This issuance is guaranteed by Huatai International, a wholly-owned subsidiary of Huatai Securities. The guarantee, amounting to RMB 7.43 bn, contributes to a total guaranteed amount of $14.40 bn (including this issuance).

The purpose of these notes is to support business development and supplement working capital. As of the announcement date, Huatai Securities and its controlling subsidiaries' total external guarantees amounted to RMB 441.80 bn, representing 23.05% of the company's latest audited net assets. Guarantees provided to controlling subsidiaries alone totaled RMB 339.09 bn, or 17.69% of the net assets.

The company's board of directors and shareholders previously approved a general authorization for overseas debt financing instruments, including guarantees for subsidiaries with asset-liability ratios exceeding 70%, such as Huatai International Financial, whose asset-liability ratio exceeds 70%. The company affirms its ability to monitor the subsidiary's solvency, indicating manageable risk.