Sayram agriculture guarantees capital for subsidiaries; warns of high debt risk

Xinjiang Sayram Modern Agriculture Co., Ltd. announced further details regarding its guarantees for working capital loans to its subsidiaries. The company has provided guarantees amounting to RMB 81.8 million for Xinjiang Xinsai Biological Protein Technology Co., Ltd., Xinjiang Xinsai Cotton Industry Co., Ltd., and Shuanghe City Xinsai Juxin Calcium Industry Co., Ltd. With these new guarantees, the cumulative actual guarantee balance stands at RMB 111.321 million. While Xinsai Biological Protein and Xinsai Cotton Industry do not have counter-guarantees, Juxin Calcium Industry has provided one. There are no overdue external guarantees.

The board of directors and supervisors, and the 2024 annual general meeting, previously approved a total guarantee amount of up to RMB 350 million for 2025, with a potential upward adjustment of 15%. This specific set of guarantees falls within the approved limits and does not require further board or shareholder approval. As of the announcement date, the total external guarantee amount by the company and its holding subsidiaries is RMB 350 million, with an actual outstanding guarantee balance of RMB 211.777 million.

A key risk highlighted is that the total external guarantee amount by the company and its holding subsidiaries exceeds 100% of the company's latest audited net assets (721.14%), with the actual outstanding balance at 436.34%. Furthermore, Xinsai Biological Protein and Xinsai Cotton Industry both have asset-liability ratios exceeding 70%, prompting a warning for investors regarding potential risks.