Overview of Guarantees
Guangdong Jushen Logistics Co., Ltd. (hereinafter referred to as "the Company") held the 19th meeting of the third board of directors on February 2, 2024, where it reviewed and approved the proposal regarding the estimated guarantee limit for wholly-owned subsidiaries for 2024. The board agreed that the Company would provide guarantees for its wholly-owned subsidiaries, Guangdong Jushen Warehousing Co., Ltd. (hereinafter referred to as "Jushen Warehousing") and Guangxi Qinzhou Bonded Port Area Jushen International Logistics Co., Ltd. (hereinafter referred to as "Qinzhou Jushen"), to apply for designated delivery warehouse qualifications for futures commodities at the Shanghai Futures Exchange, Guangzhou Futures Exchange, Zhengzhou Commodity Exchange, and Dalian Commodity Exchange. The estimated guarantee limit is not expected to exceed 3 billion RMB. This guarantee matter has been approved by the Company's second extraordinary general meeting of shareholders in 2024.
On April 19, 2024, to ensure the smooth continuation of Jushen Warehousing's related business and further meet the actual needs of the Company's development in futures delivery designated warehouse-related business, the Company held the 21st meeting of the third board of directors and approved the proposal to adjust the estimated guarantee limit for wholly-owned subsidiaries for 2024 from not exceeding 3 billion RMB to not exceeding 6 billion RMB. This matter has been approved by the Company's annual general meeting of shareholders in 2023.
On May 31, 2024, due to significant price increases in non-ferrous metals such as copper, aluminum, zinc, and tin, the Company also increased the corresponding guarantee limit for its subsidiaries' applications for futures delivery warehouse qualifications. Additionally, some of the previously issued guarantee letters for the subsidiaries' applications for futures delivery warehouse qualifications are about to expire. To ensure the smooth continuation of the Company's related business and further meet the actual needs of the Company's development in futures delivery designated warehouse-related business, the Company held the 23rd meeting of the third board of directors and approved the proposal to further adjust the estimated guarantee limit for wholly-owned subsidiaries for 2024 to not exceed 10 billion RMB. This matter has been approved by the Company's third extraordinary general meeting of shareholders in 2024.
Guarantee Progress
To meet the operational development needs of the Company, Jushen Warehousing applied to the Zhengzhou Commodity Exchange for the qualification of a designated delivery warehouse for cotton yarn, with a minimum guaranteed warehouse capacity of 5,000 tons. The warehouse address is No. 8 Jintai Road, Danzhao Logistics Center, Danzhao Town, Nanhai District, Foshan City, Guangdong Province. On July 10, 2024, the Company issued a guarantee letter for the aforementioned matter. According to the application submitted by Jushen Warehousing to the Zhengzhou Commodity Exchange, the minimum guaranteed warehouse capacity for this cotton yarn futures designated delivery warehouse is 5,000 tons, calculated at 20,335 RMB/ton (this price is the closing price of cotton yarn futures CY409 on July 9, 2024, published on the Zhengzhou Commodity Exchange website), resulting in an estimated guarantee amount of 10.2 million RMB, which is within the approved guarantee limit of 10 billion RMB from the third extraordinary general meeting of shareholders in 2024.