Nanjing Business & Tourism guarantees $4.2M for subsidiary as guarantees hit 75.5% of net assets
What's the deal? Nanjing Business & TourismDealroom has a profile for this one. Try Dealroom → (600250) said on September 30, 2026, that it will provide a US$4.13M joint liability guarantee for wholly-owned subsidiary Nanjing Nanfang Import & Export, backing a credit line from China Zheshang Bank's Nanjing branchDealroom has a profile for this one. Try Dealroom →. The guarantee falls within the company's approved 2026 quota, so no fresh board or shareholder vote was needed.
The numbers: Total outstanding external guarantees now stand at US$63.3M, or 75.5% of the company's most recent audited net assets. Actual guarantee balances total US$7.82M, of which US$6.99M covers Nanjing Nanfang. The new US$4.13M line has not yet been drawn down.
Why the risk flag? The announcement triggered a special risk warning because Nanjing Nanfang's asset-liability ratio has reached 74.98%, above the 70% threshold. The new guarantee also carries no counter-guarantee.
What's the subsidiary? Nanjing Nanfang, wholly owned by the parent, runs import-export and domestic trade from Nanjing. It posted a first-half 2026 net loss of US$96.3K, reversing a US$233.8K profit for full-year 2025. Half-year revenue was US$21.3M.
The endgame: The company says the guarantee meets routine funding needs and supports the subsidiary's operations, calling the risk "generally controllable." A December 2025 shareholders' meeting approved a US$63.3M guarantee ceiling for subsidiaries in 2026, including US$41.3M for Nanjing Nanfang, which still has US$34.3M of available quota.
The signal: With guarantees now covering three-quarters of net assets and the backed unit slipping into loss, investors get a clear read on how much of the parent's balance sheet is tied to a struggling subsidiary — even as the company reports no overdue guarantees and none extended to controlling shareholders.
Read more: minichart.com.sg
Image credit: Generated with Gemini
