Xuerong Bio-Technology subsidiary secures 40m yuan working capital loan

Shanghai Xuerong Bio-Technology Co., Ltd. confirmed that its wholly-owned subsidiary, Changchun Gaorong Biological Technology Co., Ltd., has entered into a working capital loan agreement for 40 million yuan with Agricultural Bank of China. Shanghai Xuerong Bio-Technology is providing a joint and several liability guarantee for the full debt under this loan. This guarantee falls within the previously approved 2025 annual guarantee limits for the company's subsidiaries and does not require further board or shareholder approval.

The 2025 annual guarantee limits, approved on May 23, 2024, allow for a total guarantee amount not exceeding 2.09 bn yuan for subsidiaries' financing activities. Of this, 890m yuan is allocated for subsidiaries with asset-liability ratios below 70%, and 1.2 bn yuan for those above 70%. Changchun Gaorong, with an asset-liability ratio of 71.28%, falls into the latter category.

As of the announcement date, the company and its subsidiaries have approved external guarantee limits totaling 3.23 bn yuan. The actual guarantee balance stands at 1.02 bn yuan, representing 26.66% of the company's 2024 audited total assets and 124.82% of its net assets. No overdue guarantees or guarantees involved in litigation were reported.