Meijin Energy extends guarantees for key subsidiaries, boosting financial stability

Shanxi Meijin Energy Company Limited (Meijin Energy) has provided additional guarantees for its controlled subsidiaries, reinforcing their financial stability. The company issued a RMB 500 million, one-year full joint and several liability guarantee for Shanxi Meijin Huasheng Chemical New Materials Co., Ltd. (Huasheng Chemical) with Jinshang Bank. Meijin Energy also secured a maximum principal guarantee of RMB 90 million for Huasheng Chemical’s loans with Shanghai Pudong Development Bank.

Meijin Energy also modified an existing guarantee for Foshan Feichi Automobile Technology Co., Ltd. (Feichi Technology), a controlled subsidiary, with Nanhai Rural Commercial Bank. The maximum principal balance of the guaranteed debt was adjusted from RMB 4,693.70 million to RMB 4,224.33 million, with the guarantee period extended by three years. The company further authorized Shanxi Meijin Coal Chemical Co., Ltd. (Meijin Coal Chemical) to provide a joint and several liability guarantee for supply chain finance business up to RMB 100 million with Shanghai Pudong Development Bank.

Following these transactions, Meijin Energy's remaining projected guarantee limit for its controlled subsidiaries, approved at the first extraordinary general meeting in 2025, stands at RMB 289,565.74 million. The total outstanding guarantees for subsidiaries and investee companies now amount to RMB 821,558.35 million, representing 56.85% of the company's latest audited net assets attributable to the parent company.