Zhejiang Jiantou increases subsidiary financing guarantees to over 120 bn yuan

Zhejiang Provincial Construction Investment Group Co., Ltd. (Zhejiang Jiantou) announced a new 500 million yuan external guarantee for its subsidiary, Zhejiang Construction Commercial Logistics Co., Ltd., to support its financing needs. This brings the company's total outstanding external guarantees to 120.84 billion yuan as of November 30, 2025. The guaranteed amount for wholly-owned and controlled subsidiaries stands at 97.9 billion yuan.

The new guarantee, provided to Industrial Bank Co., Ltd. Hangzhou Branch, is a joint liability guarantee with a term of 10 months and matures on September 8, 2026. Zhejiang Construction Commercial Logistics Co., Ltd. is 95.83% owned by Zhejiang Jiantou and operates in material wholesale. Its total assets were 148,365.50 million yuan and net assets were 53,215.43 million yuan as of December 31, 2024.

The company's board and shareholders approved this guarantee, which falls within previously authorized limits. However, the announcement notes that the total external guarantees by the company and its controlled subsidiaries exceed 100% of the net assets attributable to the parent company in the latest audited period, signaling a potential risk for investors. There are currently no overdue external guarantees.