Digital China approves significant guarantees for controlled subsidiary

Digital China Information Service Company has disclosed new and accumulated guarantees for its controlled subsidiary, Digital China Information System Company Limited. The board of directors and shareholders approved a guarantee limit of RMB 180 million for the controlled subsidiary's financing activities. As of the disclosure date, the cumulative actual external guarantee for the controlled subsidiary totals RMB 88.60 million, representing 156.99% of Digital China's latest audited net assets. Digital China has not provided external guarantees for consolidated entities outside of the controlled subsidiary.

The announcement indicates that the controlled subsidiary's asset-liability ratio exceeds 70%, with a net asset ratio below 50% for the latest period. This financial profile signals a higher risk level, warranting the parent company's continued financial support. The guarantees aim to assist the subsidiary with working capital loans and other financing needs.

The latest audited financial data for Digital China Information System Company Limited as of June 30, 2025, shows total assets of RMB 179,002.18 million and total liabilities of RMB 167,209.11 million. The parent company's board believes the controlled subsidiary is in good operating condition and capable of repayment, with no overdue guarantees or pending lawsuits against the parent company.