Announcement on Company and Subsidiaries Applying for Comprehensive Credit Line and Providing Guarantees to Banks
This announcement is made by Yantai Jereh Petroleum Equipment and Technology Co., Ltd. (hereinafter referred to as the "Company" or "Jereh Technology").
The Company and its Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and do not contain any false records, misleading statements, or significant omissions.
Special Reminder:
To apply for a comprehensive credit line and credit facilities from banks, and for daily operational needs (including but not limited to bid bonds, performance bonds, and supply chain products where the Company assumes final payment responsibility for its subsidiaries), the Company and its subsidiaries plan to provide guarantees for entities within the Company's consolidated financial statements, with a total limit not exceeding RMB 5.8 billion (including guarantees from the Company to its subsidiaries, between subsidiaries, and from subsidiaries to the Company, hereinafter referred to as the "Current Guarantees"). This amount represents 25.19% of the net assets attributable to the parent company as of the most recent audited period. Among these, the guarantees provided to entities with a debt-to-asset ratio of over 70% shall not exceed RMB 2.1 billion, representing 9.12% of the net assets attributable to the parent company as of the most recent audited period. The outstanding guarantee balance at any point in time shall not exceed the guarantee limit approved by the shareholders' meeting. This limit is renewable and valid from the date of approval by the 2025 shareholders' meeting until the date of the 2026 shareholders' meeting. Investors are advised to pay close attention to guarantee risks.
I. Overview of Credit and Guarantee Situation
Yantai Jereh Petroleum Equipment and Technology Co., Ltd. (hereinafter referred to as the "Company" or "Jereh Technology") held the third meeting of its seventh Board of Directors on April 15, 2026, and approved the "Proposal on the Company and its Subsidiaries Applying for Comprehensive Credit Line and Providing Guarantees to Banks." The details are as follows:
To meet the Company's needs for bank credit products and rapid processing of bank credit business for daily production, operation, and business expansion, the Company and its wholly-owned and controlled subsidiaries (hereinafter referred to as "Subsidiaries") plan to apply for a comprehensive credit line from commercial banks, foreign banks, and policy banks. The total actual utilized amount of the comprehensive credit line from banks shall not exceed RMB 20 billion (or equivalent foreign currency) (including the amount of comprehensive credit line allocated by the bank to subsidiaries or other subsidiaries, with the final approved credit line by the bank prevailing). The bank credit line includes, but is not limited to, working capital loans, project loans, letters of credit, guarantees, trade financing, bank acceptance bills, factoring, foreign exchange transactions, and supply chain financial products. This credit line is renewable and valid from the date of approval by the 2025 shareholders' meeting until the date of the 2026 shareholders' meeting.
To apply for a comprehensive credit line and credit facilities from banks, and for daily operational needs (including but not limited to bid bonds, performance bonds, and supply chain products where the Company assumes final payment responsibility for its subsidiaries), the Company and its subsidiaries plan to provide guarantees for entities within the Company's consolidated financial statements, with a total limit not exceeding RMB 5.8 billion (including guarantees from the Company to its subsidiaries, between subsidiaries, and from subsidiaries to the Company). Among these, the guarantees provided to entities with a debt-to-asset ratio of over 70% shall not exceed RMB 2.1 billion, and the guarantees provided to entities with a debt-to-asset ratio of below 70% shall not exceed RMB 3.7 billion. The specific guarantee amounts and guarantee periods shall be executed in accordance with the contract. The outstanding guarantee balance at any point in time shall not exceed the guarantee limit approved by the shareholders' meeting. This limit is renewable and valid from the date of approval by the 2025 shareholders' meeting until the date of the 2026 shareholders' meeting.