Triumph New Energy to Lift 2026 Subsidiary Guarantee Ceiling to RMB2.83 Billion

Bulletin Express09-24 21:43

Triumph New Energy Company Limited has called a 16 October 2026 extraordinary shareholders’ meeting to seek approval for raising the 2026 guarantee quota available to its consolidated subsidiaries by RMB1.00 billion to RMB2.83 billion (approximately USD388 million).

The original RMB1.83 billion limit—endorsed in March 2026—covered joint-and-several guarantees for funding needs of seven wholly-owned or majority-owned units. Management now cites “daily operational and business development needs” as grounds for the additional headroom.

Key details of the proposed adjustment:

• Scale-up: The new ceiling represents about 91% of Triumph New Energy’s latest audited net assets, up from 59% under the existing quota.

• Beneficiaries: – High-gearing (>70%) subsidiaries include CNBM (Hefei), CNBM (Luoyang), Qinhuangdao North Glass, Jiangsu Triumph New Material, CNBM (Yixing) and Kaisheng (Zhangzhou). – Lower-gearing (≤70%) entity Kaisheng (Zigong) is allocated RMB288.00 million.

• Largest single allocation: CNBM (Hefei) may receive up to RMB506.00 million, equivalent to 16.31% of group net assets.

• Validity: Guarantees remain effective for 12 months from shareholder approval and may be redistributed among subsidiaries within the overall cap, subject to Shanghai Stock Exchange rules.

• Risk oversight: All guaranteed parties are under Triumph New Energy’s control, enabling ongoing monitoring of leverage (latest subsidiary gearing ranges from 35.16% to 102.37%). The board states that guarantee risks are “controllable” and that no overdue guarantees exist.

If shareholders endorse the proposal, the company’s legal representative—or an authorised delegate—will execute individual guarantee agreements within the approved limit.

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