China Merchants Shekou guarantees $193m loan for Hangzhou Qiandao Lake Yidun

China Merchants Shekou Industrial Zone Holdings (CMSK) announced it will provide a joint liability guarantee for its wholly-owned subsidiary, Hangzhou Qiandao Lake Yidun Hotel Co., Ltd. (Hangzhou Qiandao Lake Yidun). The guarantee covers a RMB193 million loan from China Construction Bank, maturing on December 2, 2032. The guarantee will cease automatically upon completion of collateral and pledge procedures involving related real estate and accounts receivable.

This guarantee falls within the previously approved limit of RMB31.6 billion for credit facilities to subsidiaries, of which RMB15 billion is allocated for subsidiaries with asset-liability ratios exceeding 70%. Following this transaction, CMSK's total outstanding guarantees for subsidiaries will be RMB24.099 billion, with RMB9.052 billion specifically for those with asset-liability ratios above 70%.

As of the announcement date, CMSK's total external guarantees, including those for its controlled subsidiaries (excluding sales mortgage guarantees for customers), amount to RMB36.356 billion, representing 32.75% of the company's latest audited net assets attributable to the parent company. Guarantees provided to external parties outside the consolidated statement total RMB4.969 billion, or 4.48% of the net assets.