Indebtedness, guarantees and other contingent obligations
Hong Kong IPO disclosure precedents · 78 companies, 82 items
high borrowings or gearing, covenants, guarantees given or received (including related-party guarantees to be released on listing), financial guarantee contracts, shortfall-funding or repurchase obligations
As of June 30, 2026, US$160.0 million of the total consideration for the buy-back remained unsettled and was recognized as redemption liabilities.
Financial Information · p. 241
On September 21, 2026, US$160.0 million of the redemption liabilities had been derecognized after our completion and settlement of the Buy-back Arrangement.
Financial Information · p. 242
We are required to prepay 30% of the outstanding principal amount of the term loan from such major commercial bank within one month after the [REDACTED], which we intend to fund with part of the [REDACTED] from the [REDACTED].
During the Track Record Period and up to the Latest Practicable Date, Ms. Dan, Mr. Zhu and Mr. Zhai, members of the group of Controlling Shareholders of our Company, had provided personal guarantees for our interest-bearing bank borrowings. The relevant guarantees have either been released or will be released upon [REDACTED].
Financial Information · p. 257
This was partially offset by an increase of RMB196.9 million in interest-bearing bank loans primarily to fund our procurement of raw materials.
Financial Information · p. 250
Taking into account the financial resources available to us, including cash flow from operating activities, facilities available to us and the [REDACTED] from the [REDACTED], our Directors are of the view that we have sufficient working capital to meet our present and future cash requirements for the next 12 months from the date of this document.
We generally bear the interest accrued during the first 60 days after the relevant financing is advanced.
Business · p. 141
We may be required to repurchase the financed inventory and bear the interest incurred by the dealer.
Business · p. 141
The closing balance of financed amount through floor plan financing increased from RMB32.6 million as of December 31, 2024 to RMB234.0 million as of December 31, 2025, further increased to RMB304.0 million as of April 30, 2026, primarily due to the increase in the number of participating dealers and the growth in sales scale of our dealers.
As at the Latest Practicable Date, the rental guarantee for Sha Tin Service Centre and a corporate credit card guarantee were provided by a Controlling Shareholder by way of personal guarantee.
Financial Information · p. 178
Upon [REDACTED], it is expected that these personal guarantees will be replaced by either a corporate guarantee of the Group or a deposit arrangement.
As of December 31, 2023, 2024 and 2025 and June 30, 2026, the outstanding amount of our financial guarantee contracts was RMB3,193.8 million, RMB2,413.7 million, RMB2,342.8 million and RMB1,917.9 million, respectively.
Financial Information · p. 208
under such arrangements, Chint Anneng agreed to cover any shortfall between the actual electricity income generated by the relevant PV stations and the rental payments payable by the end-users.
Financial Information · p. 208
As of the Latest Practicable Date, save for the financial guarantee contracts disclosed above, we had not entered into any off-balance sheet arrangements.
As of December 31, 2023, 2024, 2025 and June 30, 2026, we had redemption liabilities of nil, RMB30.0 million, RMB32.3 million and RMB33.0 million, respectively.
Financial Information · p. 262
Our redemption liabilities mainly represented redemption obligations arising from capital contributions made by certain shareholders of our subsidiary, which are subject to contractual redemption rights and special rights granted to such shareholders.
Financial Information · p. 262
We, as the controlling shareholder of the Target Company, will undertake to fulfil such redemption obligation under certain circumstances.
The controlling shareholder of the Group had provided guarantees in connection with interest-bearing loans and other borrowings, letters of credit, note payables and guarantee letter made to the Group as of May 31, 2026.
Financial Information · p. 191
We expect that the majority of such guarantees will be released upon [REDACTED].
Financial Information · p. 191
Our Directors are of the view that each of the related party transactions set out in Note 37 to the Accountants’ Report in Appendix I to this document was conducted in the ordinary course of business on an arm’s length basis and with normal commercial terms between the relevant parties.
Such restricted bank deposits arose from our collaborative framework arrangements with certain banks in connection with facilitating access to inclusive loans for downstream agricultural product customers (the "Arrangements").
Financial Information · p. 238
Based on the above selection criteria and authorization process, we recommended 10 and 32 customers to the relevant banks under the Arrangement in 2024 and 2025, respectively ("relevant customers").
Financial Information · p. 239
Accordingly, our Directors are of the view that the Arrangements do not give rise to guarantee obligations on our part, and the risk of our deposits being deducted due to customer default is remote.
As of 31 December 2023, 2024, 2025, and 31 May 2026, certain of our bank loans were guaranteed by Mr. Chen, our Controlling Shareholder, or companies in which an associate of Mr. Chen is the controlling shareholder. The underlying bank borrowings and such guarantees as of the Latest Practicable Date had been settled.
Financial Information · p. 237
Our Directors are of the view that each of the related party transactions set out in note 30 to the Accountants' Report in Appendix I to this Document was conducted on an arm's length basis and would not distort our track record results or cause our historical results to be not reflective of our future performance.
The Group had substantial investment liabilities relating principally to infrastructure development projects and rolling stock renewal.
Financial Information · p. 175
The investment programme and associated investment liabilities require substantial funding and are therefore an important determinant of the Group’s liquidity and financing profile.
Financial Information · p. 175
The Group maintains available credit lines with certain banks, and management has engaged with investors regarding the refinancing of borrowings due within 12 months after the reporting date.
In addition, we expect certain connected transactions of our Group with our Controlling Shareholders and/or their respective close associates will continue after the Listing, details of which are set out in the “Connected Transactions” in this Prospectus.
Summary · p. 14
As of December 31, 2023, 2024 and 2025, our Shareholder, Hefei Construction Investment, provided guarantees for our bank and other borrowings of RMB4,605.8 million, RMB3,005.6 million and RMB3,005.6 million, respectively.
Financial Information · p. 213
Our Directors believe that our transactions with related parties during the Track Record Period were conducted on an arm’s-length basis and did not distort our results of operations or make our historical results not reflective of our future performance.
As of December 31, 2024 and 2025, our Company provided guarantee to Shandong Bohai Bay Port China Terminal Co., Ltd. of RMB38.2 million and RMB37.8 million, respectively, in which we held 30.0% equity interests as of the Latest Practicable Date.
Financial Information · p. 251
These guarantees are exclusively a requirement of the lending bank for the associate's working capital loans, under which all shareholders must provide proportional guarantees based on their shareholdings.
As of December 31, 2023, 2024, 2025, and April 30, 2026, our total redemption liabilities to non-controlling shareholders (including current and non-current portions) amounted to RMB38.5 million, RMB42.0 million, RMB214.3 million and RMB268.4 million, respectively.
Financial Information · p. 253
Consequently, the redemption liabilities in respect of SZ Packaging are not expected to be extinguished or converted into equity upon Listing.
As of the date of this prospectus, the injunction had been lifted, and a bank guarantee in connection with the Litigation that covers the litigation compensation of RMB14.3 million had been provided to the Court.
Business · p. 205
The bank guarantee is secured by a pledge of RMB5.7 million in cash from our Company and is subject to counter-guarantee from both our Company and Dr. Wang.
Business · p. 205
The counter-guarantee from Dr. Wang will be released upon the Listing.
Our interest-bearing bank loans were primarily secured by pledges on various assets, including trade receivables of certain subsidiaries, equity interest in certain subsidiaries, and property, plant and equipment and land, and were guaranteed by certain of our directors, see Note 27 in Appendix I to this document for more details.
Financial Information · p. 256
We expect these director guarantees to be released upon [REDACTED], see “Relationship with Our Controlling Shareholders — Independence from Our Controlling Shareholders — Financial Independence” for more details.
During the Track Record Period and up to the Latest Practicable Date, we obtained certain bank loans which were secured by guarantees provided by Mr. Wang, our Single Largest Shareholder and/or his close associates.
Financial Information · p. 253
As of the Latest Practicable Date, saved for the outstanding balance of the Jiangsu Xingsiyu Loan, of which RMB323.75 million were guaranteed by Mr. Wang and Five Star Holdings, the rest of the guarantees have been released, and/or replaced with corporate guarantees or replacement security given by one or more members of our Group.
Pursuant to the agreement between our Company and Huiyin Financial Leasing, our Group have provided joint and several liability guarantees for all obligations under financial lease contracts entered into by lessees recommended by our Company and our dealers and Huiyin Financial Leasing.
Financial Information · p. 248
Our outstanding guarantee balances as of December 31, 2023, 2024 and 2025 were RMB1,254.1 million, RMB1,798.9 million and RMB1,835.2 million, respectively.
Financial Information · p. 248
During the Track Record Period and up to the Latest Practicable Date, no claims were settled under these guarantees and Huiyin Financial Leasing had consistently maintained stringent lessee eligibility criteria.
The financial guarantees disclosed in Note 33 to the Accountant’s Report were provided by our controlling shareholder and directors in connection with certain bank borrowings of our Group. As of the date of this Document, the relevant borrowings had either been fully repaid or the corresponding guarantees had been released, and no such arrangements remained outstanding.