Megmeet boosts subsidiary guarantees, manages idle capital effectively

Shenzhen Megmeet Electrical (SZSE:002851) has provided a joint liability guarantee of CNY 200,000,000 to its wholly-owned subsidiary, Shenzhen Megmeet Electrical Supply Chain Management Co., Ltd. for a comprehensive credit line with China Merchants Bank. This action falls within the CNY 3,950,000,000 guarantee limit approved by the 2024 annual general meeting, bringing the total outstanding guarantees for subsidiaries with a debt-to-asset ratio exceeding 70% to CNY 1,060,000,000, or 17.62% of the company’s audited net assets.

Concurrently, Megmeet continues to manage its idle proceeds from the 2019 and 2022 convertible bonds. As of December 3, 2025, CNY 25,000,000 from the 2019 bonds was redeemed, yielding CNY 33,333.33 in investment income. Similarly, CNY 40,000,000 from the 2022 bonds was redeemed, generating CNY 109,168.66 in income. The company maintains an additional CNY 21,400,000,000 in available external guarantee limits for its subsidiaries.

These financial maneuvers, approved by the board and supervisory committee in April and May 2025, underscore Megmeet’s strategy to support its subsidiaries' operational needs while enhancing capital efficiency through low-risk wealth management products. The company confirmed that all guarantee activities are limited to consolidated subsidiaries and that there are no overdue guarantees or litigation-related losses.