Henan Dayou Energy guarantees $50 million loan for subsidiary

Henan Dayou Energy Company Limited announced that its board of directors approved providing an 80% joint liability guarantee for Akesu Tahe Mining Industry Co., Ltd. (Tahe Mining) for a $50 million loan renewal. Tahe Mining, an indirectly held subsidiary, applied for the renewal with the Akesu Tarim Rural Commercial Bank, Alar Branch, for a three-year term.

The guarantee amount provided by Henan Dayou Energy totals $40 million, with the remaining 20% ($10 million) guaranteed by another shareholder, Alar State-owned Capital Investment and Operation Group Co., Ltd.

The total external guarantee balance for Henan Dayou Energy and its subsidiaries, excluding the current guarantee, stands at $466.35 million. All guarantees are for subsidiaries within the consolidated scope, representing 8.23% of the company's most recently audited net assets. The company noted that all guarantees are within its control, and the subsidiary has good credit and repayment ability.

In addition to the guarantee, the board also approved the "Henan Dayou Energy Company Limited Accountant Selection System," which will be made available on the Shanghai Stock Exchange website. Both resolutions passed with 11 votes in favor.