Announcement on Related Party Transactions for Providing Guarantees for Subsidiaries' Comprehensive Credit Applications to Wanxiang Financial Co., Ltd.
Wanxiang Qianchao Co., Ltd. and all members of the board guarantee that the information disclosed is true, accurate, and complete, with no false records, misleading statements, or significant omissions.
I. Overview of the Guarantee Situation
- Some subsidiaries of the company require funding for daily operations. After negotiations with Wanxiang Financial Co., Ltd. (hereinafter referred to as "Wanxiang Financial"), it was agreed that Wanxiang Financial would provide a total of 7 billion yuan in comprehensive credit and loan services to certain subsidiaries of the company, of which 440 million yuan requires guarantees, detailed as follows:
| Guarantor | Guaranteed Party | Guarantor Shareholding Ratio | Guaranteed Party Latest Asset-Liability Ratio | Guarantee Balance | Estimated Guarantee Amount for 2026 | Estimated Guarantee Amount as a Percentage of Latest Net Assets of Listed Company | Related Party Guarantee |
|---|---|---|---|---|---|---|---|
| Qianchao Bearing Co., Ltd. | Jiangsu Qianchao Bearing Co., Ltd. | 100% | 81.13% | 0 | 80,000 | 0.89% | No |
| Zhejiang Wanxiang Precision Engineering Co., Ltd. | Wanxiang Precision Jiangsu Co., Ltd. | 100% | 61.22% | 55,767.9 | 250,000 | 2.78% | No |
| Qianchao Bearing Co., Ltd. | Qianchao Cheng (Huaian) Co., Ltd. | 100% | 50.38% | 0 | 110,000 | 1.22% | No |
| Total | 55,767.9 | 440,000 | 4.89% |
- Wanxiang Financial is a subsidiary of Wanxiang Group, the controlling shareholder of the company. According to the Shenzhen Stock Exchange Listing Rules, the company has a related relationship with Wanxiang Financial, thus this transaction constitutes a related party transaction.