Oriental Energy increases guarantee exposure with new subsidiary credit facility

Oriental Energy Co., Ltd. announced it has provided a guarantee for a bank credit facility to its subsidiary, Oriental Energy (Zhangjiagang) New Materials Co., Ltd., for 2.4 bn yuan. This action is aimed at supporting the subsidiary's business expansion and falls within the 38.65 bn yuan total guarantee limit approved by shareholders for subsidiaries in 2025. Oriental Energy (Zhangjiagang) New Materials, with Oriental Energy holding a 91% stake, had total assets of 874,675.86 yuan at the end of June 2025, and a debt-to-asset ratio of 61.45%.

This new guarantee significantly impacts Oriental Energy's overall financial exposure. As of the announcement date, the aggregate outstanding guarantees by the listed company and its holding subsidiaries amount to 220.89 bn yuan, representing 199.07% of the listed company's net assets as of December 31, 2024. The company has explicitly warned investors to pay close attention to the guarantee risk due to the total external guarantee amount exceeding 100% of the latest audited net assets.

The board of directors and independent directors affirmed that the subsidiary's assets, operations, and financial condition are sound, and the company has robust internal controls for guarantee management. They believe the guarantee risk is controllable and necessary for business development, aligning with relevant regulations and company articles.