Zongshen Power extends CN¥280m in new guarantees to subsidiaries

Chongqing Zongshen Power Machinery Company Limited recently provided an aggregate of CN¥280 million in joint and several liability guarantees for the comprehensive credit facilities of three consolidated subsidiaries: Chongqing Zongshen General Power Machinery Co., Ltd., Chongqing Dajiang Power Equipment Manufacturing Co., Ltd., and Dongguan Li Zhihui Energy Co., Ltd. These guarantees fall within the scope of previously approved limits for inter-company guarantees and litigation preservation credit guarantees.

Specifically, the company guaranteed CN¥130 million for Chongqing Zongshen General Power Machinery Co., Ltd. with China Minsheng Bank Co., Ltd. Chongqing Branch, and CN¥50 million for Chongqing Dajiang Power Equipment Manufacturing Co., Ltd. with China Merchants Bank Co., Ltd. Chongqing Branch. A further CN¥100 million guarantee was issued for Dongguan Li Zhihui Energy Co., Ltd. with China CITIC Bank Corporation Limited Chongqing Branch. All guarantees are valid for three years from the maturity date of the respective debt obligations.

As of the disclosure date, Zongshen Power's actual guaranteed amount for consolidated subsidiaries, wholly-owned subsidiaries, and inter-company guarantees totals CN¥2 billion, representing 40.08% of the company’s net assets as of December 31, 2024, as audited.