Yunnan Copper boosts subsidiary's borrowing capacity with new guarantee

Yunnan Copper Co. Ltd. announced it has provided an additional loan guarantee of 85 million yuan for its controlled subsidiary, Yunnan Diqing Mining Development Co. Ltd. (Diqing Mining). This latest guarantee, executed with the Agricultural Bank of China Shangri-La City Branch, is a full joint and several liability guarantee, bringing the cumulative total executed under the 2025 guarantee plan to 285 million yuan. The total approved guarantee limit for Diqing Mining for 2025 was 290 million yuan, with the remaining 5 million yuan no longer being executed.

Diqing Mining, established on October 10, 2004, has a registered capital of 120 million yuan. Yunnan Copper holds a 75% equity stake in Diqing Mining, which is a key part of Yunnan Copper's consolidated financial statements. As of June 30, 2025, Diqing Mining's asset-liability ratio exceeds 70%, with total assets of 498.64 million yuan and total liabilities of 1,048.00 million yuan, resulting in negative net assets of -549.36 million yuan.

Despite Diqing Mining's high asset-liability ratio, Yunnan Copper's board believes the guarantee is necessary for the subsidiary's operational needs and development. Risks are mitigated by Diqing Mining's other shareholder, Diqing Tibetan Autonomous Prefecture Development Investment Group Co. Ltd., providing counter-guarantees proportional to its 25% stake. The total outstanding guarantees for controlled subsidiaries after this transaction amount to 285 million yuan, representing 1.92% of Yunnan Copper's audited net assets for 2024.