Meijin Energy provides $35m guarantee for subsidiary

Shanxi Meijin Energy (SZSE:000723) has announced it will provide a full principal and interest guarantee of approximately $35 million USD (350,099,300 RMB) for its holding subsidiary, Shanxi Meijin Huasheng Chemical New Materials. Huasheng Chemical is undertaking a financing lease (sale and leaseback) business with SPDB Financial Leasing, for a lease principal of $45 million USD (324 million RMB). The term of the single business transaction does not exceed 36 months. As of September 30, 2024, the asset-liability ratio of the guaranteed entity exceeded 70%. As of the end of 2023, Huasheng Chemical’s assets totaled $142 million USD with a net asset value of $31.6 million USD. The total amount of guarantees provided by Meijin Energy to its subsidiaries and shareholding companies is approximately $109 million USD, accounting for 52.98% of the company's latest audited net assets attributable to the parent company.