Sinopec Oilfield Service Corporation (SINOPEC SSC, 01033) will ask shareholders at the 2025 annual general meeting to approve a new guarantee mandate totalling RMB74.13 billion, effective until the close of the 2026 AGM.
Key components 1. Credit guarantees to wholly-owned subsidiaries (and their subsidiaries): up to RMB31.50 billion. 2. Performance guarantees to wholly-owned subsidiaries (and their subsidiaries): up to RMB40.70 billion. 3. Performance guarantee to 50%-owned Mexico DS Company for the EBANO project: up to USD275 million (approximately RMB1.93 billion).
Regulatory thresholds • The aggregate ceiling equals 95.96% of audited total assets (RMB77.26 billion) and 801.38% of audited net assets (RMB9.25 billion) as at 31 December 2025, exceeding the 30% and 50% limits stipulated by the Shanghai Stock Exchange. • Under Hong Kong Listing Rules, the USD275 million JV guarantee will constitute a disclosable transaction, as the relevant percentage ratios exceed 5% but remain below 25%.
Risk profile of major guaranteed entities • Five subsidiaries with gearing ratios above 90%—including Sinopec Shengli Oil Engineering (93.2%) and Sinopec Zhongyuan Oil Engineering (99.82%)—account for RMB216.40 billion of the proposed ceiling. • Mexico DS Company shows a gearing ratio of 65.81%; the guarantee will alternate annually between SINOPEC SSC and partner DIAVAZ, with the non-guarantor issuing a unilateral guarantee for 50% of the covered amount.
Existing exposure (as at 31 December 2025) • Credit guarantees outstanding: RMB18.37 billion. • Performance guarantees to subsidiaries: RMB10.38 billion. • Performance guarantee to Mexico DS Company: USD275 million. • Total external guarantees: approximately RMB30.50 billion; no overdue guarantees and no guarantees to controlling shareholders or related parties.
Board view Directors consider the guarantees essential for international expansion, domestic operations, and the EBANO project, and confirm no detrimental counter-guarantee arrangements. The mandate received board approval on 16 March 2026 and will be put to shareholders for final authorisation.