Wintrue holding’s high guarantee exposure raises financial risk concerns

Chengdu Wintrue Holding Co. and its subsidiaries have outstanding external guarantees totaling CNY 13.028 bn. This figure represents 147.78% of the company's net assets as per the 2024 audited financial statements attributable to listed company shareholders (CNY 8.816 bn). All guarantees are mutual financing guarantees between the company and its subsidiaries. Investors are advised to pay close attention to the associated financial risks, though the company states these risks are within controllable limits.

The company’s board of directors and an extraordinary general meeting, held on March 7, 2025, and March 24, 2025, respectively, approved a resolution to provide mutual financing guarantees among the company and its subsidiaries, not exceeding CNY 15 bn for 2025. These guarantees can take various forms, including general and joint liability guarantees, equity pledges, and asset mortgages, and are valid for 12 months from the approval date.

The company recently provided an additional guarantee of CNY 18 million for Yingcheng Xindu Chemical Co., Ltd. and CNY 6 million for Jiashili (Yingcheng) Fertilizer Co., Ltd., both subsidiaries. These are joint liability guarantees, valid for three years from the debt maturity date. As of the announcement date, the company has not provided any guarantees for entities outside the consolidated financial statements, nor are there any overdue guarantees, guarantees involved in litigation, or guarantees requiring payment due to adverse court rulings.