Huagong Tech guarantees subsidiaries, streamlines governance

Huagong Tech plans to provide guarantees totaling up to 8.67 bn yuan for 25 wholly-owned and controlling subsidiaries. This represents 85.19% of its 2024 audited net assets. The guarantees are valid for 12 months and cover various bank financing activities, including loans and letters of credit. Nine subsidiaries with asset-liability ratios exceeding 70% were highlighted for increased risk, necessitating shareholder approval.

The company also approved a 19.831 bn yuan comprehensive credit line for 15 banks and will continue its 300m yuan foreign exchange derivative hedging program. These financial measures are part of broader governance updates, including the abolition of the Supervisory Board, with its functions transferred to the Board's Audit Committee. Huagong Tech also revised several internal governance policies to align with new legal requirements and enhance operational efficiency and risk management.