Hainan Development repays subsidiary's debts, subsidiary faces financial difficulties

Hainan Development recently fulfilled its guarantee responsibilities by repaying a total of CNY 1,202,404.84 to Zheshang Bank Hefei Branch and CNY 2.09 million to Huishang Bank Bengbu Economic Development Zone Sub-branch on behalf of Avic Sanxin. This action was taken after Avic Sanxin was unable to meet its maturing bank obligations. Currently, Hainan Development has cumulatively repaid bank debts totaling CNY 122 million on behalf of Avic Sanxin.

The company had previously approved a 2024 guarantee limit of up to CNY 386 million for Avic Sanxin, and as of the announcement date, the outstanding principal amount of guaranteed debt was CNY 185 million. Avic Sanxin provided counter-guarantees to Hainan Development using its own movable and immovable assets.

Avic Sanxin's financial situation shows a negative net asset of CNY 15,952,000 as of June 30, 2025 (unaudited), with total assets of CNY 49,949,000 and total liabilities of CNY 65,901,000. For the first half of 2025, Avic Sanxin reported an unaudited operating income of CNY 19,236,000 and a net loss of CNY 19,452,000, indicating ongoing financial challenges.