Zhaowei Optoelectronics plans significant guarantees for subsidiaries, boosts wealth management

Shenzhen Zhaowei Machinery & Electronic (Zhaowei Optoelectronics) has proposed an external guarantee limit of RMB 25,000 for its wholly-owned subsidiaries for 2026. This includes RMB 15,000 for Dongguan Zhaowei Machinery & Electronic Co., Ltd., RMB 8,000 for Suzhou Zhaowei Drive Co., Ltd., and RMB 2,000 for Shenzhen Zhaowei Dexterous Hand Technology Co., Ltd. Suzhou Zhaowei Drive Co., Ltd. has a recent asset-liability ratio exceeding 70%, prompting a shareholder vote for approval. These guarantees aim to support operational needs and ensure healthy development.

In addition to the guarantees, Zhaowei Optoelectronics plans to utilize up to RMB 2.3 billion of its idle own funds for wealth management. The objective is to enhance capital efficiency, strengthen cash flow management, and generate additional financial returns. These investments will focus on low-risk, highly liquid financial products offered by qualified institutions.

Both proposals were approved by the board of directors on December 10, 2025. The guarantee proposal for 2026 and the wealth management plan require shareholder approval. The initiatives reflect the company’s strategy to optimize capital allocation and support its subsidiaries' growth within its overall business development and financial stability.