On June 22, Bestway Marine & Energy Technology Co., Ltd. issued an announcement regarding the provision of a guarantee for a subsidiary. The announcement stated that, to meet operational needs, the company would issue a corporate letter of guarantee for its wholly-owned subsidiary, Jiangsu Dajin Heavy Industry, thereby providing a guarantee for the subsidiary’s applications for comprehensive bank credit lines and activities such as financial leasing.
The announcement discloses that Dajin Heavy Industry has undertaken shipbuilding projects for two 40,400-dwt bulk carriers (hull numbers: DJHC6408, DJHC6410) and two 64,500-dwt bulk carriers (hull numbers: DJHC6611, DJHC6612), and has signed shipbuilding contracts with the shipowner, Messrs. EOS Shipping and Trading Ltd. or their nominee.
Two 40,400-dwt bulk carriers are scheduled for delivery on August 26, 2028, and March 27, 2029, respectively; two 64,500-dwt bulk carriers are scheduled for delivery on February 24, 2030, and May 27, 2030, respectively.
Bestway Marine & Energy Technology intends to provide guarantees for Dajin Heavy Industry in connection with the aforementioned four contracts, with a total guarantee amount of US$9,246,600 (approximately RMB 63,015,600), and to issue four “Corporate Letters of Guarantee.”
Bestway Marine & Energy Technology stated that, given the imminent expiration of the RMB 150 million comprehensive credit facility applied for by Dajin Heavy Industry from the Yangzhong Branch of Bank of China, Ltd. (Bank of China), it now intends to apply to Bank of China for a new comprehensive credit facility of up to (and including) RMB 150 million, with a term of up to (and including) one year, primarily to supplement working capital needs for production and operations. Bestway Marine & Energy Technology will provide a joint and several liability guarantee for the aforementioned comprehensive credit facility with a maximum principal amount not exceeding (including) RMB 100,000,000, and will sign a “Maximum Amount Guarantee Agreement.”
Dajin Heavy Industry plans to enter into a financial leasing arrangement with Suyin Financial Leasing Co., Ltd., using certain machinery and equipment as the leased assets; the financing amount is RMB 109.7104 million (approximately US$ 16.1823 million), with a term not exceeding one year. Bestway Marine & Energy Technology will provide a joint and several liability guarantee for the total rental payments (including interest) arising from this transaction—amounting to RMB 112.4328 million—and will sign a Guarantee Agreement.
Record shows that Dajin Heavy Industry was established in 2012 and has since become a wholly-owned subsidiary of Bestway Marine & Energy Technology. It is capable of building 30,000-ton bulk carriers, container ships, product tankers, chemical tankers, multi-purpose vessels, and wind turbine installation platforms, among others.