Wuzhou Special Paper Provides RMB 400 Million Guarantee for Subsidiaries

Wuzhou Special Paper has announced plans to provide financial guarantees totaling RMB 400 million (approximately RMB 350 million for one subsidiary and RMB 50 million for another) to support the financing activities of its subsidiaries.

According to a company announcement released on March 11, Wuzhou Special Paper will provide a RMB 350 million guarantee for its holding subsidiary Wuzhou Special Paper (Jiangxi) Co., Ltd. and a RMB 50 million guarantee for Zhejiang Wuxing Paper Co., Ltd..

Both guarantees will be provided in the form of joint and several liability guarantees, with a term of three years. The company stated that the guarantee amounts, as well as the cumulative guarantees planned for 2025, remain within the limits approved by its shareholders’ meeting.

As of the date of the announcement, the total external guarantees provided by Wuzhou Special Paper and its holding subsidiaries amounted to RMB 8.77 billion. This represents 248.29% of the company’s latest audited net assets attributable to shareholders.

Meanwhile, the outstanding balance of external guarantees stood at RMB 5.56 billion, equivalent to 157.33% of the company’s latest audited net assets attributable to shareholders, according to the disclosure.

The guarantees are intended to support subsidiary operations and financing activities as the company continues to expand its specialty paper production and strengthen its market position.