China Merchants Shekou guarantees subsidiary's 950m yuan loan

China Merchants Shekou Industrial Zone Holdings (CMSK) announced it will provide a joint and several liability guarantee for its wholly-owned subsidiary, Chengdu Merchants Beihu Land Co., Ltd. (Chengdu Beihu), for a 950 million yuan debt financing from China Re Asset Management Co., Ltd. The guarantee will cover the principal amount up to 950 million yuan for a 10-year term, effective for three years from the guarantee contract's effective date. This action supports Chengdu Beihu's project development and operational growth.

The guarantee falls within CMSK's previously approved overall guarantee limit for its subsidiaries. As of the announcement date, CMSK's total external guarantees, including those for its subsidiaries (excluding sales mortgage guarantees for customers), amount to 35.065 billion yuan, representing 31.59% of the company’s net assets attributable to parent company shareholders in the latest audited period.

Chengdu Beihu, established in 2009, reported total assets of 6.70474 billion yuan and total liabilities of 6.65491 billion yuan as of August 31, 2025, with a net profit of negative 61.75 million yuan for January-August 2025. CMSK holds 100% equity in Chengdu Beihu, and the company views the guarantee as a manageable risk, not impacting its normal operations.