Maijia Xincai backs Zhuhai unit with $4.2M loan guarantee
What's the deal? Maijia Xincai New Materials Technology (Shanghai), listed as 603062, is providing a US$4.13M joint-liability guarantee for its wholly owned Zhuhai subsidiary. The guarantee covers credit from Shanghai Pudong Development BankDealroom has a profile for this one. Try Dealroom →'s Zhuhai branch, under a maximum-guarantee contract signed on November 12, 2026.
Why now? The move falls within a guarantee quota approved by the board in March and by shareholders in April 2026. It supports financing as the Zhuhai unit expands production.
The details: The contract covers financing from November 6, 2026 to May 20, 2027, with a principal cap of US$4.13M plus interest and related costs. The Zhuhai subsidiary, with registered capital of US$27.5M, posted a 2025 net loss of about US$693K, down from a US$228.3K profit in 2024.
What could go wrong? The company's guarantees are stacking up. Including this deal, outstanding guarantees for the Zhuhai unit reach US$47.6M, while total external guarantees for Maijia Xincai and its subsidiaries hit US$138.6M — 48.25% of audited net assets.
Group-wide, the listed company and its controlled subsidiaries carry US$344M in external guarantees, equal to 119.76% of recent audited net assets. That exceeds the 100% threshold, though the company reports no overdue or disputed guarantees.
The signal: The guarantee itself is routine, but it lands against a strained backdrop. Nine-month revenue slipped 1.1% year on year, net profit fell 55.8%, and operating cash flow turned negative — making continued guarantees a point worth watching as the firm funds expansion.
Read more: sohu.com
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