1. Overview of Guarantees
Anhui Chujiang Technology New Materials Co., Ltd. (hereinafter referred to as "the Company" or "Chujiang New Materials") held the 32nd meeting of the 6th Board of Directors on March 15, 2025, and the 2024 Annual General Meeting on April 11, 2025, where it approved the proposal to provide guarantees for its subsidiaries and joint subsidiaries applying for bank credit, agreeing to provide a total guarantee of no more than RMB 1,080 million. The details are as follows:
- The Company provides a joint liability guarantee of no more than RMB 275 million for its wholly-owned subsidiary Anhui Chujiang High-Precision Copper Strip Co., Ltd. (hereinafter referred to as "Chujiang High-Precision Copper Strip") for its application to commercial banks.
- The Company provides a joint liability guarantee of no more than RMB 85 million for its wholly-owned subsidiary Wuhu Chujiang Alloy Copper Materials Co., Ltd. (hereinafter referred to as "Chujiang Alloy") for its application to commercial banks.
- The Company provides a joint liability guarantee of no more than RMB 165 million for its holding subsidiary Jiangsu Xinhai High-Conductivity New Materials Co., Ltd. (hereinafter referred to as "Xinhai High-Conductivity") for its application to commercial banks.
The specific details of the guarantees are disclosed in the Company's announcements on March 18, 2025, and April 12, 2025 (Announcement No.: 2025-021) and other related announcements.
2. Progress of Guarantees
(1) Current Guarantee Progress
- Based on the operational needs of its wholly-owned subsidiary Chujiang High-Precision Copper Strip, the Company recently provided a joint liability guarantee for its application for a comprehensive credit limit of RMB 200 million to China Merchants Bank Co., Ltd. Wuhu Branch (hereinafter referred to as "China Merchants Bank Wuhu Branch"). The Company signed an "Irrevocable Maximum Guarantee Agreement" with China Merchants Bank Wuhu Branch. Before this guarantee, the Company's guarantee balance for Chujiang High-Precision Copper Strip was RMB 222.52 million, and after this guarantee, the balance is RMB 242.52 million.
- Based on the operational needs of its wholly-owned subsidiary Chujiang Alloy, the Company recently provided a joint liability guarantee for its application for a comprehensive credit limit of RMB 10 million to the Anhui Branch of the National Development Bank (hereinafter referred to as "NDB Anhui Branch"). The Company signed a "Guarantee Contract" with NDB Anhui Branch. Before this guarantee, the Company's guarantee balance for Chujiang Alloy was RMB 70.50 million, and after this guarantee, the balance is RMB 71.50 million.
- Based on the operational needs of its holding subsidiary Xinhai High-Conductivity, the Company recently provided a joint liability guarantee for its application for a comprehensive credit limit of RMB 5 million to the Danyang Branch of Agricultural Bank of China Co., Ltd. (hereinafter referred to as "Agricultural Bank Danyang Branch"). The Company signed a "Guarantee Contract" with Agricultural Bank Danyang Branch. Before this guarantee, the Company's guarantee balance for Xinhai High-Conductivity was RMB 160 million, and after this guarantee, the balance is RMB 165 million.
The above guarantees are within the approved limit discussed in the 32nd meeting of the 6th Board of Directors and the 2024 Annual General Meeting, and do not require further approval from the Board of Directors or shareholders.
(2) Guarantee Status as of the Announcement Date
The Company's joint liability guarantees for its wholly-owned or holding subsidiaries are as follows: