Shanghai Zhezhong Group Co., Ltd. Stock Abbreviation: Zhezhong Stock Stock Code: 002346 Announcement No.: 2026-10 ZHEZHONG GROUP Announcement on Providing Guarantees for Wholly-Owned Subsidiaries and Subsidiaries The Company and the entire board of directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and do not have any false records, misleading statements, or major omissions. Shanghai Zhezhong Group Co., Ltd. (hereinafter referred to as the "Company") held the second meeting of its sixth board of directors on April 28, 2026. The meeting deliberated and passed the "Proposal on Providing Guarantees for Wholly-Owned Subsidiaries and Subsidiaries." In accordance with relevant laws and regulations and the "Articles of Association," this proposal needs to be submitted to the Company's 2025 annual general meeting of shareholders for deliberation. The relevant matters are hereby announced as follows: I. Bank Credit and Guarantee Situation In view of the needs of business development, the Company and its subsidiaries are applying for a comprehensive credit line totaling no more than RMB 1.1 billion from banks. The credit line includes, but is not limited to, working capital loans, project loans, issuance of bank acceptance drafts, guarantees, and letters of credit, with a term from the date of approval by the 2025 annual general meeting of shareholders to the date of the next annual general meeting of shareholders. The Company will provide joint liability guarantees for the aforementioned credit line. The total estimated guarantee amount for the Company's wholly-owned subsidiaries and subsidiaries will not exceed RMB 1.1 billion. II. Estimated Guarantee Amount for This Period
| Guarantor | Guaranteed Party | Shareholding Ratio | Latest Balance Sheet Asset-Liability Ratio | Balance as of Previous Trading Day (RMB '000) | Credit Limit (RMB '000) | Proportion of Guarantee Limit to Company's Latest Net Assets | Is it a Related Party Guarantee? |
|---|---|---|---|---|---|---|---|
| Company | Shanghai Zhezhong Electric Power Co., Ltd. | 100% | 34.58% | 10,099.70 | 100,000 | 127.45% | No |
| Shanghai Zhezhong Electric Power Co., Ltd. | Shanghai Tianjie Construction Engineering Co., Ltd. | 100% | 41.06% | 347.85 | 10,000 | 94.69% | No |
| Note: The upper limit of the cumulative guarantee amount mentioned above can be adjusted between the Company's wholly-owned subsidiaries and its subsidiaries based on actual operating conditions, but the total amount of comprehensive credit guarantee will not exceed RMB 1.1 billion. | |||||||
| III. Basic Information of the Guaranteed Parties | |||||||
| (I) Wholly-owned Subsidiary: Shanghai Zhezhong Electric Power Co., Ltd. |
- Name: Shanghai Zhezhong Electric Power Co., Ltd.
- Unified Social Credit Code: 91310120630930202A
- Date of Establishment: July 2, 1998
- Registered Address: Building 1, No. 368 Cang Gong Road, Fengxian District, Shanghai
- Legal Representative: Jiang Lufeng
- Registered Capital: RMB 364 million
- Business Scope: Production and sales of electrical appliances and accessories, high and low voltage electrical switchgear, transformers, wires and cables, electrical insulation products, and electronic products. Commodity trading, technical services for power transmission and transformation equipment and refrigeration equipment, import and export business of goods a