LYGEND RESOURCE (02245.HK): Guarantee for Wholly-Owned Subsidiary's RMB500m Credit Facility

NewTimeSpace News: On 19 October 2026, Lygend Resources & Technology Co., Ltd. (stock code: 02245) released an overseas regulatory announcement setting out its Shenzhen Stock Exchange announcement: its wholly-owned subsidiary Ningbo Lygend Huiran Trading Co., Ltd. recently entered into a comprehensive credit facility contract with Ping An Bank Ningbo Branch for a credit amount of RMB500 million, of which the exposure amount is RMB350 million; the Company entered into a maximum-amount guarantee contract with Ping An Bank to guarantee the subsidiary's debt exposure under the facility.

The announcement specifically warned that the guaranteed entity's gearing ratio exceeds 70% and investors should pay full attention to the guarantee risk. The guarantee is on a joint and several liability basis; the guarantee period runs until three years after the maturity of the relevant debt under the principal contract, and is extended accordingly if the facility is renewed; the maximum principal balance of the guaranteed debt is RMB350 million, covering principal, interest, default interest, liquidated damages, compensation and costs of enforcing the claims.

The guarantee falls within the Company's 2025 annual general meeting-approved guarantee plan: for 2026 the Company intends to apply for comprehensive credit facilities of not more than RMB40.659 billion and to provide new guarantees for its controlled subsidiaries of not more than RMB11.855 billion, with the authorisation valid from 22 May 2026 until the 2026 annual general meeting, so no further board or shareholder approval is required.

The guaranteed entity, Huiran Trading, was established on 7 June 2017 with registered capital of RMB50 million and is wholly owned by the Company; its audited total assets, total liabilities and net assets at the end of 2025 were RMB4.131 billion, RMB3.985 billion and RMB146 million respectively, and its unaudited figures at the end of September 2026 were RMB5.955 billion, RMB5.396 billion and RMB560 million. As at the date of the announcement, the Group's guarantee balance was RMB17.885 billion, representing 85.50% of its latest audited net assets, of which RMB578 million (2.76%) was provided for entities outside the consolidated group, with no overdue debt or guarantee-related litigation losses.