Shengda Resources details subsidiary guarantees, chairman's support

Shengda Resources announced the progress of previously approved guarantees for wholly-owned subsidiaries and the acceptance of a gratuitous guarantee from its chairman, Zhao Qing, and his spouse, Li Yuanchun. The company's total approved guarantee amount for subsidiaries is RMB 6 bn, representing 197.16% of its latest audited net assets. The total outstanding guarantee balance provided by the company and its subsidiaries amounts to RMB 2.707 bn, or 88.94% of its latest audited net assets.

The guarantees primarily involve Inner Mongolia Guangda Mining Co., Ltd. and Chifeng Jindu Mining Co., Ltd., both wholly-owned subsidiaries. For Guangda Mining, Shengda Resources, along with Zhao Qing and Li Yuanchun, provided a joint and several liability guarantee. The company also offered a pledge of its 100% equity in Guangda Mining, and Guangda Mining itself provided a mortgage on its mining rights. The maximum liability for this guarantee is RMB 140m.

Similarly, for Jindu Mining, the company, Zhao Qing, and Li Yuanchun provided a joint and several liability guarantee with a maximum liability of RMB 120m, and Guangda Mining mortgaged its mining rights as collateral.

The gratuitous guarantee from chairman Zhao Qing and Li Yuanchun covers financing facilities for Shengda Resources and its subsidiaries up to RMB 2.5 bn, without charging any fees or requiring counter-guarantees. This ensures financial flexibility for the company's operations. The company confirmed no other related-party transactions occurred between January 1, 2025, and the disclosure date, apart from these gratuitous guarantees.