Summary by Moomoo AI
Shandong Gold Mining Co., Ltd. (“Shandong Gold”) announced on 22 March 2024 that its holding subsidiary Yintai Gold Co., Ltd. (“Yintai Gold”) plans to provide guarantees to its wholly-owned and holding subsidiaries up to RMB 350 billion in total. The guarantee will support the production and operations needs of subsidiaries, where guarantees for subsidiaries with a balance sheet ratio of less than 70% are not more than USD$50 billion and no more than US$300 billion for subsidiaries with a balance ratio greater than 70%. AS OF THE ANNOUNCEMENT DATE, YINTAI GOLD HAS PROVIDED APPROXIMATELY $57.8 MILLION IN GUARANTEES TO ITS HOLDING SUBSIDIARIES, REPRESENTING 5% OF ITS MOST RECENT AUDITED NET ASSETS AND 1.76% OF SHANDONG GOLD'S MOST RECENT AUDITED NET ASSETS. This guarantee scheme is subject to the approval of the Yintai Gold and Shandong Gold General Meetings. The Board of Directors of Shandong Gold stated that this would help improve the financing efficiency of the subsidiary, promote the stable and sustainable development of Yintai Gold, and considered the underwriting risk to be manageable.