Shougang guarantees subsidiary debt, assures asset value after acquisition

Beijing Shougang (SZSE: 000959) announced plans to provide up to CNY 350 million in loan guarantees for its subsidiary, Qian'an Zhonghua Coal Chemical Co., Ltd, ensuring stable operations within its supply chain. The decision, approved by the board with related directors abstaining, underscores Shougang's commitment to its core suppliers. A special audit report for the minority stake acquisition of Beijing Shougang Steel Trade Investment Management Co., Ltd, the company's audit reports further reveals the value of assets which are at CNY 321.2 million. Additionally, a audit from the Shandong company reveals a value CNY 282.8 million in assessment. This is higher, which assures that Shougang has fulfilled all performance objectives after the acquisition. Shougang’s accumulated guarantees, including this new commitment, total CNY 684 million, representing 1.40% of its latest audited net assets, with no overdue debts or litigation-related guarantees to date.