Guangdong Yuehai Feeds' subsidiary guarantees associate's acquisition, boosts working capital

Guangdong Yuehai Feeds announced that its wholly-owned subsidiary, Hunan Yuehai Feeds, will provide a guarantee of RMB 1,244萬元 for associate Hunan Xuanjiu Jiatianxia Ecological Agriculture Co., Ltd. This guarantee supports Hunan Xuanjiu's acquisition of a farming base, valued at RMB 4,965萬元. Hunan Yuehai Feeds will take on a pro-rata share of the guarantee responsibilities.

Concurrently, Guangdong Yuehai Feeds plans to optimize its financial operations by establishing an accounts receivable factoring business. This initiative aims to shorten receivable collection times, reduce outstanding receivables, and improve working capital efficiency, with a total facility of up to RMB 10,000萬元. This factoring will be available for 12 months from board approval.

Both decisions, approved by the board on September 15, 2025, are designed to enhance the company’s strategic development and financial health. The guarantee is within manageable risk, and the factoring arrangement will improve cash flow and reduce management costs without harming shareholder interests.