Donghua Energy Co., Ltd.
Announcement on Providing Guarantees for Mason Energy and Related Party Transactions
The Company and all members of the Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed in this report, and that there are no false representations, misleading statements, or material omissions.
Special Risk Warning: The total external guarantees provided by the Company and its holding subsidiaries exceed 100% of the net assets as of the most recent audited period. Investors are advised to pay close attention to the guarantee risk.
I. Overview of Guarantee Situation
Donghua Energy Co., Ltd. (hereinafter referred to as the "Company" or "Donghua Energy") and its related party Mason Energy (Nanjing) Co., Ltd. (hereinafter referred to as "Mason Nanjing") plan to apply for comprehensive credit facilities from China CITIC Bank Co., Ltd. Nanjing Xuanwu Sub-branch, with a credit line not exceeding RMB 470 million and a term of 1 year. They also plan to apply for comprehensive credit facilities from China Merchants Bank Co., Ltd. Nanjing Branch, with a credit line not exceeding RMB 200 million and a term of 1 year. Furthermore, they plan to apply for comprehensive credit facilities from Zhejiang Chouzhou Commercial Bank Co., Ltd. Nanjing Branch, with a credit line not exceeding RMB 200 million and a term of 1 year. Related party Mason Energy (Zhangjiagang) Co., Ltd. (hereinafter referred to as "Mason Zhangjiagang") plans to apply for comprehensive credit facilities from Jiangsu Bank Co., Ltd. Suzhou Branch, with a credit line not exceeding RMB 100 million and a term of 1 year.
On March 6, 2025, the Company's first extraordinary general meeting of shareholders in 2025 deliberated and passed the "Proposal on Accepting the Entrusted Management of Equity of Holding Subsidiary's Affiliated Company and Related Party Transactions," accepting the entrustment from the controlling shareholder Donghua Oil (Changjiang) Co., Ltd. to manage the business activities of MATHESON ENERGY PTE. LTD. and its holding subsidiaries (collectively referred to as "Mason Energy"), including Mason Nanjing and Mason Zhangjiagang.
Based on the principle of mutual synergy and common development, the Company intends to provide joint liability guarantees for the comprehensive credit facilities applied for by Mason Nanjing and Mason Zhangjiagang from financial institutions. This guarantee will be secured by a counter-guarantee from Mason Liquefied Gas Trading (Ningbo) Co., Ltd.
This related party guarantee matter still needs to be submitted for deliberation by the Company's shareholders' meeting, and related parties with an interest in this related party guarantee will abstain from voting.
II. Basic Information of the Guaranteed Party
(I) Mason Energy (Nanjing) Co., Ltd.
- Basic Information
| Name of Guaranteed Party | Mason Energy (Nanjing) Co., Ltd. |
|---|---|
| Date of Establishment | August 20, 2004 |
| Registered Address | Room 8508, Yingying Building, No. 99, Tuanjie Road, Jianchuangyuan, Jiangsu Free Trade Zone, Northern New Area, Nanjing |
| Legal Representative | Lin Liangjie |
| Registered Capital | RMB 663.0292 million |
| Business Scope | Energy conservation, R&D and application of renewable and comprehensive utilization technologies; import and export business and transit trade of dangerous chemicals, wholesale business, excluding goods and technologies restricted or prohibited by the state (operate according to the scope approved by the approval authority and license); R&D of high-tech and new products; consulting services for high-tech enterprises; enterprise restructuring, transfer, acquisition, merger, asset custody consulting; self-operated and agency import and export business and transit trade of various goods and technologies, wholesale business, excluding goods and technologies restricted or prohibited by the state (operate according to the scope approved by the approval authority and license); projects that require approval according to laws and regulations shall be carried out after approval by relevant departments. |
| Equity Structure | Mason Energy Co., Ltd. holds 82.9526%, Donghua Oil (Changjiang) Co., Ltd. holds 17.0474% |