China Zhonghua Geotechnical secures 2 bn yuan credit from controlling shareholder

China Zhonghua Geotechnical Engineering Group has advanced its related party transactions, securing up to 2 bn yuan in credit from its controlling shareholder, Chengdu Xingcheng Investment Group. This arrangement facilitates bank loans and other financing for the company and its subsidiaries for three years. In return, China Zhonghua Geotechnical provides counter-guarantees, including equity pledges and asset mortgages, for the portion of the guarantee exceeding the shareholder's 29.27% equity stake, and pays a guarantee fee of up to 1.0% per annum on the guaranteed amount.

Recent transactions include a 500 million yuan working capital loan from China Construction Bank, a 400 million yuan working capital loan from Bank of China, and a 300 million yuan working capital loan from Hua Xia Bank, all secured by Chengdu Xingcheng Investment Group. These agreements involve various collateral, such as pledges of subsidiary equity and the company's office building in Daxing District, Beijing, ensuring robust financial support for China Zhonghua Geotechnical's operations.

As of the disclosure date in 2025, China Zhonghua Geotechnical and its related parties have cumulative related party transactions totaling 105,546.69 million yuan with Chengdu Xingcheng Investment Group. The company's total outstanding external guarantees, including those to its subsidiaries, amount to 34,755.71 million yuan, representing 42.52% of its last audited net assets of 81,736.12 million yuan. All guarantees are current and without litigation or default.