China West Construction guarantees subsidiary's bank credit for operational stability

China West Construction Group Co., Ltd. announced it has provided a ¥5,000 million guarantee for its wholly-owned subsidiary, China West Construction Group Eighth (Shanghai) Co., Ltd. This guarantee, formalized through a "Maximum Guarantee Contract" with China CITIC Bank Co., Ltd. Chengdu Branch, falls within the previously approved ¥20,000 million guarantee limit for the subsidiary. The overall bank credit guarantee limit for all consolidated subsidiaries is ¥1,500 million, approved at the 2024 annual shareholders' meeting and valid until the 2025 annual shareholders' meeting.

As of September 17, 2025, China West Construction Group has nine outstanding guarantee matters within the ¥1,500 million limit. The total external guarantees for all consolidated subsidiaries, including this new guarantee, amount to ¥61,000 million, representing 6.43% of the parent company's net assets as of the 2024 audited consolidated financial statements.

The company stated that the guarantee is intended to ensure the normal production and operations of the subsidiary and aligns with the company's overall interests. Given that the guaranteed entity is a wholly-owned subsidiary, the associated risk is deemed controllable and is not expected to adversely affect the company. No overdue guarantees, guarantees involving litigation, or losses from judicial rulings related to guarantees have occurred.