Besunny Discloses Guarantee Progress for Controlling Subsidiary, May Face Claims Over Prior Disclosure Issues

Radar Finance’s Lezhu Ba produced by | Xiao Wenzhu Edited by | Deep Sea

On March 10, Bestway announced the “Progress Notice on Providing Guarantees for Controlling Subsidiaries.”

Shaoxing Bestway Chemical Co., Ltd. (hereinafter referred to as “the Company” or “Shaoxing Bestway”) held its third meeting of the fourth board of directors on April 18, 2025, and its 2024 annual shareholders’ meeting on May 9, 2025. The meetings approved the “Proposal on the Company’s Expected Guarantee Limit for 2025.” According to the company’s operational development needs, in 2025, the company plans to provide guarantees not exceeding 1.027 billion RMB for bank comprehensive credit facilities within the scope of its consolidated financial statements, with guarantees for its controlling subsidiary Tongling Bestway Technology Co., Ltd. (hereinafter “Tongling Bestway”) expected to be no more than 607 million RMB. The guarantee limit is valid for 12 months from the date of approval at the 2024 annual shareholders’ meeting.

Recently, the company signed the “Maximum Guarantee Contract” with the Tongling Branch of the Bank of China. The company provides a joint liability guarantee for Tongling Bestway’s application for a 60 million RMB credit line with the Tongling Branch of the Bank of China. Tongling Bestway, as a controlled subsidiary within the scope of the company’s consolidated financial statements, is under the company’s control in daily operations and financial management. The financial risk of the guarantee is within the company’s controllable range, so other shareholders have not provided proportional guarantees. This matter falls within the guarantee limit approved by the company’s board of directors and shareholders’ meeting and does not require further approval.

Bestway states that as of the date of this announcement, the actual guarantee balance for subsidiaries within the scope of the consolidated financial statements is 374 million RMB, accounting for 21.91% of the company’s audited net assets attributable to shareholders in 2024. The guarantee balance from subsidiaries to the parent company is 489 million RMB, and from subsidiaries to subsidiaries is 121 million RMB. The company and its subsidiaries do not provide guarantees outside the scope of the consolidated financial statements, nor are there overdue guarantees, guarantees involved in litigation, or guarantees resulting in losses due to judgments against them.

Notably, on October 31, 2025, Bestway issued an “Announcement on the Actual Controller Receiving a Filing Notice from the China Securities Regulatory Commission.”

The announcement shows that Bestway received a notice from its actual controller, Chen Feng, stating that on October 31, 2025, the China Securities Regulatory Commission (hereinafter “CSRC”) issued a “Filing Notice” (No.: Zhengjian Filing No. 01120250034) alleging violations related to failing to fulfill mandatory tender offer obligations and information disclosure violations. According to the Securities Law of the People’s Republic of China, the Administrative Penalty Law of the People’s Republic of China, and other laws and regulations, the CSRC decided to initiate a case against Chen Feng.

In response, Song Lianmin, director of Jiangsu Shengheng Law Firm, which has handled numerous stock claim cases and compensation, told Radar Finance that when the actual controller of a listed company is filed, it often involves the listed company itself. Investors who bought Bestway shares between the listing date and October 31, 2025, and held them at the close of trading on October 31, 2025, can pre-register for claims against the responsible parties. To register, follow the public account “Lezhu Ba” (Lezhu Code: 99). There are no fees before compensation.

Tianyancha information shows that Bestway has 7 trademark registrations and 54 patents related to intellectual property.