ZTE Corp to guarantee USD 1.5bn for subsidiary

ZTE Corporation (SZSE:000063) announced that it will provide guarantees totaling no more than USD 1.5 billion for its wholly-owned subsidiary, Shenzhen ZTE Kangxun Electronic Co., Ltd. (ZTE Kangxun). The guarantees will support ZTE Kangxun's obligations related to its procurement from various suppliers. The decision was made during the company's tenth board meeting on April 7, 2025, and is subject to shareholder approval. ZTE Kangxun, established in 1996 with a registered capital of CNY 175.5 million, engages in import/export trading, warehousing, and electronic product technology services. Following approval, the total amount of external guarantees approved by the company and its subsidiaries would be approximately CNY 2,467,560,790.00. The amount of guarantees to be made is approximately CNY 1,209,530,030.00, representing 16.61% of the company's net assets attributable to shareholders of listed companies in 2024.