Zhejiang Xinheng Co., Ltd. (hereinafter referred to as "the Company") held the 18th meeting of the 9th Board of Directors on April 14, 2026, to review and approve the proposal on providing guarantees for its wholly-owned subsidiaries. The details are as follows:
1. Overview of the Guarantee
To meet the operational and development funding needs of its wholly-owned subsidiaries, the Company intends to provide guarantees for bank financing, with a proposed new guarantee amount of RMB 800 million (or equivalent foreign currency). This new guarantee amount accounts for 2.44% of the Company's audited net assets as of December 31, 2025, and the guaranteed parties are all subsidiaries with a debt-to-asset ratio of over 70%. The validity period of the guarantee is from the date of approval of this proposal until the annual general meeting of shareholders in 2026. The Company may sign guarantee contracts with the lending banks for a maximum term of five years. Within the guarantee limit, the Chairman of the Company is authorized to sign relevant legal documents. According to the Company's Articles of Association and relevant laws and regulations, this proposal must be submitted to the shareholders' meeting for approval.
The expected guarantee amounts are as follows: