Linzhou Heavy Machinery's guarantees for new loan push total above net assets

Linzhou Heavy Machinery Group Co., Ltd. recently secured an RMB17.75 million loan from Zhongyuan Bank Co., Ltd. for a one-year term. This loan is guaranteed by Linzhou Heavy Machinery Forging and Casting Co., Ltd., a wholly-owned subsidiary, through a joint and several liability guarantee. This transaction aligns with resolutions passed at board and shareholder meetings in February and March 2025, which approved inter-guarantees among the company and its subsidiaries, up to an aggregate amount of RMB1,000 million.

As of the disclosure date, Linzhou Heavy Machinery's total external guarantees, including the latest one, amount to RMB1,071.8184 million. This figure represents 168.18% of the company's latest audited net assets. Specifically, guarantees provided by wholly-owned subsidiaries for the company total RMB480.37 million, which is 75.38% of the latest audited net assets. Guarantees for entities within the consolidated scope amount to RMB290.9639 million (45.66% of net assets), while guarantees for entities outside the consolidated scope total RMB300.4845 million (47.15% of net assets).

The company emphasized that all required deliberation and disclosure procedures for these guarantees have been completed, and there are no overdue or irregular guarantees as of the announcement date. Investors are advised to note the significant proportion of external guarantees relative to the company's net assets.