Hainan Rubber guarantees subsidiary Halcyon Agri loans amid high financial risk

Hainan Rubber Industry Group (Hainan Rubber) has provided additional guarantees for loans to its controlling subsidiary, Halcyon Agri Corporation Limited (Halcyon Agri). The company will provide a joint and several liability guarantee for Halcyon Agri's RMB350m loan from the Export-Import Bank of China, Hainan Branch, covering up to RMB23,835m in principal and related costs. Halcyon Agri's other shareholder, Sinochem International (Holdings), will provide a 29.20% guarantee for the loan.

Furthermore, Hainan Rubber adjusted its guarantee for an existing RMB700m loan from the Export-Import Bank of China, Hainan Branch, to RMB47,670m in principal and related costs, reflecting a 68.10% liability. As of the announcement date, Hainan Rubber's total external guarantees, including the latest, amount to RMB452,806.08m, representing 45.99% of its latest audited net assets attributable to the parent company. Guarantees for controlling subsidiaries total RMB259,019.85m, or 26.31% of the parent company's net assets.

The company noted that Halcyon Agri’s latest asset-liability ratio exceeded 70%, advising investors to be aware of the associated risks. Halcyon Agri reported total assets of $203,627.4m and total liabilities of $154,748.5m as of September 30, 2025, with an asset-liability ratio of 76%.