Oriental Energy boosts subsidiary credit line with $1.6bn guarantee

Oriental Energy has provided a guarantee for its subsidiary, Oriental Energy (Zhangjiagang) New Material Co., Ltd., for a comprehensive credit line with cooperating banks. The guarantee, totaling 1.6 billion yuan (newly added), ensures the subsidiary's ability to expand operations. This falls within the 38.65 billion yuan guarantee limit approved by the 2025 first extraordinary general meeting, with 33.65 billion yuan allocated for subsidiaries with an asset-liability ratio below 70% and 5 billion yuan for those at or above 70%.

The subsidiary, established in 2011, is 91% owned by Oriental Energy. Its primary activities include importing propane, producing propylene, hydrogen, and polypropylene, along with wholesale of hazardous chemicals, chemical raw materials, and products. As of December 31, 2024, Oriental Energy (Zhangjiagang) New Material Co., Ltd. reported total assets of 8.15 billion yuan, liabilities of 4.77 billion yuan, and owner's equity of 3.38 billion yuan, with an asset-liability ratio of 58.5%.

As of the announcement date, Oriental Energy's total external guarantees for itself and its controlled subsidiaries amounted to 21.621 billion yuan, representing 194.85% of the company’s net assets attributable to shareholders as of December 31, 2024. Guarantees for entities outside the consolidated scope totaled 2.529 billion yuan, or 22.79% of the net assets attributable to shareholders. The company confirmed no overdue, disputed, or loss-bearing guarantees.