China West Construction secures $3bn factoring deal, provides guarantees

China West Construction Group announced a $3 billion non-recourse accounts receivable factoring agreement with China Construction Finance Co., Ltd., a related party. This move, approved by the board, aims to enhance asset utilization and cash flow. The company projects its 2026 daily related party transactions, including sales and purchases with its controlling shareholder and subsidiaries, will not exceed $10.5 billion. This follows $6.079 billion already incurred in the first nine months of 2025.

Additionally, the company has provided a total of $700 million in outstanding guarantees for its subsidiaries, representing 7.38% of its 2024 audited net assets attributable to the parent company. These guarantees support the subsidiaries' operational needs and are deemed to be within controllable risk. The latest guarantee, a $30 million maximum guarantee contract with Postal Savings Bank of China, Chengdu Branch, is for its subsidiary, China Construction West Construction Mining Co., Ltd., which reported a net loss of $621.95 million in the first nine months of 2025.