Avic Sanxin fulfills guarantees as subsidiary enters bankruptcy

Avic Sanxin (SZSE:002163) has paid 5,759,400 yuan to Zheshang Bank on behalf of its subsidiary, Hainan Development, fulfilling a guarantee obligation following Hainan Development’s inability to repay bank debt. This payment adds to a total of 38,662,000 yuan in bank debts and 25,557,000 yuan in employee compensation that Avic Sanxin has repaid for Hainan Development. The parent company had previously approved guarantee limits for Hainan Development, initially 369,000,000 yuan, later adjusted to 386,000,000 yuan for 2024, and 411,000,000 yuan for 2025.

Hainan Development is now seeking bankruptcy liquidation due to sustained losses, insolvency, and inability to repay maturing debts, including 55,000,000 yuan owed to Avic Sanxin. The subsidiary, primarily engaged in solar glass production, has faced severe market competition and declining prices, leading to a full production halt by September 2025. This follows previous shutdowns of its 650-ton and 550-ton kiln furnaces and several deep-processing lines in 2024 and 2025.

Avic Sanxin is currently seeking shareholder approval to reappoint Tianjian Certified Public Accountants (Special General Partnership) as its 2025 audit institution, with an audit fee of 1,100,000 yuan. The change reflects increased consolidated entities and audit scope. Tianjian has a strong investor protection record and has no major integrity issues, despite some prior administrative penalties and supervision measures.