Inovance subsidiary to guarantee credit for its subsidiaries

Shenzhen Inovance Technology [SZSE:300124] announced that its holding subsidiary, Suzhou Inovance United Power System, has approved providing joint liability guarantees for its wholly-owned subsidiaries: Inovance United Power (Hong Kong) Investment Limited and Inovance United Power System (Hungary) Limited. The guarantees are for credit lines of up to CNY 100 million each, to be valid for one year from the date of the resolution. As of the announcement date, Inovance's total guarantee amount is CNY 8.9 billion, representing 31.79% of its 2024 audited net assets. If the proposed guarantees for its subsidiaries are fully utilized, Inovance's cumulative external guarantee balance will be CNY 2.95 billion, accounting for 10.54% of the company's 2024 audited net assets. The company stated that this guarantee is to meet the subsidiaries' business development needs and is within a controllable risk range.