1. Board Meeting Situation
The 26th meeting of the 9th Board of Directors of Hengdian Group Dongci Co., Ltd. (hereinafter referred to as "the Company") was notified to all directors in writing or via email on November 20, 2025, and was held on November 25, 2025, in a hybrid format of in-person and remote voting. A total of 9 directors (including independent directors) were supposed to attend, and all 9 directors were present. The attendance, procedures, and discussions of the meeting complied with the provisions of the Company Law of the People's Republic of China, the Articles of Association, and the Rules of Procedure for Board Meetings.
2. Board Meeting Review
The meeting was chaired by the Company's Chairman, Ren Hailiang. After careful discussion, the attending directors reviewed and approved the following proposals:
(1) Proposal on Estimated Guarantee Limits for 2026
The proposal regarding the estimated guarantee limits for the Company and its subsidiaries for the year 2026 was approved with 9 votes in favor, 0 against, and 0 abstentions. The Company estimates that the new guarantee limits for 2026 for subsidiaries within the consolidated financial statements, guarantees between subsidiaries, and guarantees provided by subsidiaries to the Company will not exceed 1.83 billion RMB (or equivalent foreign currency). Among these, the guarantee limit for entities with a debt-to-asset ratio below 70% will not exceed 430 million RMB (or equivalent foreign currency), and for entities with a debt-to-asset ratio of 70% or above, it will not exceed 1.4 billion RMB (or equivalent foreign currency). The term is from the date of approval by the Company's second extraordinary shareholders' meeting in 2025 until the date of the 2026 annual shareholders' meeting. Additionally, based on actual operational needs, guarantees can be adjusted among entities with a debt-to-asset ratio below 70% and those with a debt-to-asset ratio of 70% or above within the above limits. The Board expressed its opinion on the estimated guarantee limits for 2026, with detailed content available in the Company's announcement on the designated information disclosure website http://cninfo.com.cn (Announcement No.: 2025-069), also published in the Securities Times on November 26, 2025. This proposal will also be submitted for approval at the Company's second extraordinary shareholders' meeting in 2025.