Jiusheng Electric intends to provide a financing guarantee of no more than 200 million yuan for its subsidiary.

Radar Finance | Yang Yang Edited by | Li Yihui

On March 19, Jiusheng Electric (301082) announced that in order to ensure the stability of the production and operation of its subsidiary Zhejiang Jiusheng Cross-linked Cable Co., Ltd., and to improve the efficiency of guarantee financing for the subsidiary, the company, based on its and its subsidiary’s current credit limits and projected operational needs through 2026, plans to provide a total financing guarantee limit of no more than RMB 200 million for the subsidiary. The use period of this guarantee limit is valid from the date the annual shareholders’ meeting approves it in 2025 until the date the 2026 annual shareholders’ meeting is held, and the limit can be reused.

The guaranteed party, Zhejiang Jiusheng Cross-linked Cable Co., Ltd., is a wholly owned subsidiary of Jiusheng Electric. Its latest asset-liability ratio is 73.00%. The board of directors believes that the subsidiary’s operations are stable, its credit status is good, and risks are controllable. This guarantee aligns with the company’s long-term development needs and helps improve the subsidiary’s loan and financing efficiency.

As of the date of this announcement, the total guarantee limit provided by the listed company to its subsidiaries is RMB 200 million (excluding this guarantee), with a total guarantee balance of RMB 158.665 million, accounting for 15.27% of the company’s latest audited net assets attributable to shareholders.

According to Tianyancha, Jiusheng Electric was established on May 19, 2004, with a registered capital of RMB 226.309174 million. The legal representative is Zhang Jianhua, and its registered address is No. 1000 Xifeng Road, Huzhou Economic and Technological Development Zone. Its main business includes the research, development, production, sales, and service of fire-resistant special cables, power cables, heating cables, and other related products.

Currently, the company’s chairman is Zhang Jianhua, the secretary of the board is Jin Xingzhong, with 486 employees, and the actual controller is Zhang Jianhua.

The company has one associated company, including Zhejiang Jiusheng Cross-linked Cable Co., Ltd.

In terms of performance, the company’s operating income for 2023, 2024, and 2025 is projected to be RMB 2.004 billion, RMB 1.911 billion, and RMB 2.321 billion, respectively, with year-on-year growth rates of 4.86%, -4.64%, and 21.43%. The net profit attributable to shareholders is expected to be RMB 50.6754 million, -RMB 35.5647 million, and RMB 36.9612 million, with year-on-year growth rates of -35.86%, -170.18%, and 203.93%. During the same period, the company’s asset-liability ratios are 64.09%, 70.86%, and 69.75%.

Regarding risks, Tianyancha data shows that the company has 144 internal Tianyan risks, 10 surrounding risks, 233 historical risks, and 100 warning alert risks.