Overview of the Guarantee
To promote the business development of its subsidiary and enhance its economic efficiency and profitability, the company intends to provide a guarantee of no more than RMB 250 million for its wholly-owned subsidiary, Shanghai Kete New Materials Co., Ltd. (hereinafter referred to as "Shanghai Kete") to apply for a credit line from the bank. The specific credit bank, guarantee amount, and guarantee period will be subject to the signed guarantee contract. The validity period for signing the guarantee contract is 12 months from the date of approval by the board of directors. This guarantee has been approved by the sixth meeting of the eighth board of directors held on March 31, 2026, with a voting result of 9 votes in favor, 0 votes against, and 0 abstentions. The total amount of this external guarantee is RMB 250 million, accounting for 3.85% of the company's audited net assets for 2025. According to the "Self-Regulatory Guidelines for Listed Companies on the Shenzhen Stock Exchange No. 1 - Standard Operation of Main Board Listed Companies" and the company's articles of association, this guarantee falls within the authority of the board of directors and does not require submission to the shareholders' meeting for approval. This guarantee does not constitute a related party transaction and does not constitute a major asset reorganization as defined by the "Measures for the Administration of Major Asset Reorganizations of Listed Companies."