China Merchants Shekou to guarantee $120m for subsidiary

China Merchants Shekou Industrial Zone Holdings (SZSE:001979) announced it will provide a guarantee of up to RMB 86.7 million (approximately $12.03 million) for a RMB 170 million development loan obtained by its subsidiary, Yancheng Shishan Zhaohai Real Estate Co., Ltd. The loan, sourced from China Merchants Bank's Yancheng branch, has a 2-year term, with the guarantee covering the loan's duration plus three years. This guarantee aligns with the RMB 46.7 billion guarantee quota approved by the company's shareholders, leaving RMB 38.469 billion in remaining guarantee availability. Yancheng Shishan Zhaohai, 51% owned by China Merchants Shekou, reported net losses of RMB 71.62 million in 2024 and RMB 63,530 for January 2025, with total assets of RMB 306.26 million. The guarantee is proportional to China Merchants Shekou's ownership stake in the subsidiary, and the other shareholder of Yancheng Shishan Zhaohai will provide the remaining proportional amount.