China Merchants Shekou guarantees subsidiaries' bank loans totaling over 390m yuan

China Merchants Shekou Industrial Zone Holdings (CMSK) will provide guarantees for three wholly-owned subsidiaries: Shenzhen Zhaoyage Real Estate Management Co., Ltd., Shenzhen China Merchants Apartment Development Co., Ltd., and Shenzhen Taohuayuan Real Estate Co., Ltd. Shenzhen Zhaoyage will receive a 50m yuan housing rental loan, Shenzhen China Merchants Apartment will receive 280m yuan and 30m yuan housing rental loans, and Shenzhen Taohuayuan will receive a 100m yuan housing rental loan, all from Industrial Bank Shenzhen Branch.

CMSK will provide joint and several liability guarantees for these loans, which have terms of three to 15 years. The guarantees, based on 100% equity ratios, cover principal amounts not exceeding the loan values, with a guarantee period of three years from each debt’s maturity date. These guarantees are within the 31.6bn yuan total guarantee limit approved by CMSK's board and shareholders.

As of the announcement date, CMSK's total external guarantees, including those for its subsidiaries, amount to 35.065bn yuan, representing 31.59% of the latest audited net assets attributable to the parent company. Guarantees for entities outside the consolidated statements stand at 5.014bn yuan, or 4.52% of the net assets. No overdue or litigated guarantees, nor any losses from guarantee judgments, have occurred.