Huaming Power Equipment Co., Ltd. (hereinafter referred to as "the Company" or "Huaming Equipment") announces that the seventh meeting of the seventh board of directors has approved the proposal to apply for comprehensive credit guarantees from banks. The Company and its subsidiaries intend to provide guarantees for a total credit limit not exceeding RMB 1.5 billion, all for subsidiaries with a debt-to-asset ratio of 70% or below. This limit will be jointly utilized by the Company and its wholly-owned subsidiaries, Shanghai Huaming Power Equipment Manufacturing Co., Ltd. (hereinafter referred to as "Huaming Manufacturing") and Shanghai Huaming High Voltage Electrical Switch Manufacturing Co., Ltd. (hereinafter referred to as "Huaming High Voltage"). The guarantees will include various types such as guarantees, mortgages, and pledges. This matter is subject to approval at the Company's 2025 annual shareholders' meeting. The validity period of the guarantee limit is from the date of approval at the 2025 annual shareholders' meeting until the date of the 2026 annual shareholders' meeting.
Overview of Guarantees
| Guarantor | Guaranteed Party | Guarantor's Shareholding Ratio | Guaranteed Party's Latest Debt-to-Asset Ratio | Current Guarantee Balance (10,000 RMB) | New Guarantee Limit (10,000 RMB) | Guarantee Limit as Percentage of Latest Audited Net Assets | Related Guarantee |
|---|---|---|---|---|---|---|---|
| Huaming Equipment, Huaming Manufacturing, Huaming High Voltage | Huaming Manufacturing | 100% | <70% | 78,414.18 | 150,000 | 47.74% | No |
| Huaming High Voltage | 100% | 0 | No |