Stock Code: 002388 Stock Abbreviation: New Asia Process Announcement No.: 2026-027 New Asia Process (Zhejiang) Co., Ltd. Announcement on Providing Performance Guarantee for Subsidiary The Company and all members of the Board of Directors guarantee the content of this announcement is true, accurate, and complete, and bear joint and several liability for any false or misleading statements or material omissions. Special Notice: New Asia Process (Zhejiang) Co., Ltd. (hereinafter referred to as the "Company" or "this Company") is providing a performance guarantee for its consolidated subsidiary, New Asia Zhongning New Materials Technology (Quzhou) Co., Ltd. (hereinafter referred to as "New Asia Zhongning New Materials"). The asset-liability ratio of the guaranteed entity is below 70%. The purpose of this guarantee is to support the subsidiary's business development, and the risk is controllable. Investors are kindly requested to pay close attention to the guarantee risk. I. Overview of Guarantee Situation (I) Basic Situation of This Guarantee New Asia Zhongning New Materials signed a "Long-Term Procurement and Exclusive Supply Agreement" (hereinafter referred to as the "Main Agreement") with DONGWHA (TIANJIN) ELECTROLYTE CO., LTD (hereinafter referred to as "Party A"). The Main Agreement stipulates that New Asia Zhongning New Materials will supply lithium hexafluorophosphate to Party A long-term using part of its production line. Party A will procure from New Asia Zhongning New Materials and pay a performance deposit as agreed. The Company will provide an irrevocable joint and several liability guarantee for New Asia Zhongning New Materials to refund the performance deposit to Party A and to fully and faithfully perform its supply obligations under the Main Agreement. (II) Deliberation Situation The Company held the 26th meeting of the Sixth Board of Directors on April 27, 2025, and the 2024 Annual Shareholders' Meeting on May 21, 2025. The meetings deliberated and approved the "Proposal on the Company and its Subsidiaries Applying for Comprehensive Credit Line and Providing Guarantees for 2025". To meet the financing needs of the Company and its subsidiaries, and to ensure standardized operations and controllable risks, considering the guarantee implementation in 2024, the Company and its subsidiaries estimate that the total guarantee amount for 2025 will not exceed RMB 1.5 billion (inclusive). Among them, the guarantee amount for entities with an asset-liability ratio not exceeding 70% will not exceed RMB 500 million (inclusive), and the guarantee amount for entities with an asset-liability ratio exceeding 70% will not exceed RMB 1 billion (inclusive). The validity period is from the date of approval by the Company's 2024 Annual Shareholders' Meeting until the deliberation of the same proposal at the 2025 Annual Shareholders' Meeting. The relevant content can be found in the "Announcement on Applying for Comprehensive Credit Line and Providing Guarantees for the Company and its Subsidiaries for 2025" disclosed by the Company on Juchao Information Network (www.cninfo.com.cn) on April 29, 2025. This credit and guarantee matter falls within the scope of the external guarantee limit and authorization approved by the 2024 Annual Shareholders' Meeting for 2025. The specific guarantee matters that have occurred have been authorized by the Shareholders' Meeting to the Company's management to be responsible for signing relevant guarantee agreements with financial institutions (or signing them one by one), and no separate board or shareholder meeting is required for deliberation. II. Progress of Guarantee Regarding the refund of the performance deposit by New Asia Zhongning New Materials to Party A and the full and faithful performance of its supply obligations under the Main Agreement, the Company has issued an "Performance and Payment Guarantee Letter" notarized by the Chinese notary public, providing an irrevocable joint and several liability guarantee for the aforementioned obligations of New Asia Zhongning New Materials. III. Main Content of the Guarantee Agreement The main content of the "Performance and Payment Guarantee Letter" issued by the Company to Party A is as follows:
- Guarantor (Surety): New Asia Process (Zhejiang) Co., Ltd.
- Beneficiary: Dongwha (Tianjin) Electrolyte Co., LTD.
- Principal Debtor (Guaranteed Party): New Asia Zhongning New Materials Technology (Quzhou) Co., Ltd.
- Guaranteed Main Agreement: "Long-Term Procurement and Exclusive Supply Agreement" signed between the Beneficiary and New Asia Zhongning New Materials.
- Guarantee Method: Joint and several liability guarantee. The Beneficiary may directly claim against the Guarantor without first taking any legal remedies against New Asia Zhongning New Materials.
- Scope and Amount of Guarantee: (1) Guarantee for Refund of Performance Deposit: The Guarantor irrevocably and unconditionally guarantees that if the Beneficiary has no breach of contract during the term of the Main Agreement or upon its termination, New Asia Zhongning New Materials shall refund the performance deposit received from the Beneficiary in the amount of RMB 15 million. If New Asia Zhongning New Materials fails to refund within 14 days after the expiration or termination of the Main Agreement, the Guarantor shall pay the full amount immediately upon receipt of the Beneficiary's written request. (2) Guarantee for Contract Damages: The Guarantor guarantees that New Asia Zhongning New Materials will fully and faithfully perform its supply obligations under the Main Agreement. If New Asia Zhongning New Materials breaches the Main Agreement and causes losses to the Beneficiary, the Beneficiary has the right to claim compensation from the Guarantor, but the cumulative compensation amount by the Guarantor shall not exceed RMB 30 million.
- Guarantee Period: From the date of effectiveness of the guarantee until the completion of all guaranteed obligations. IV. Basic Information of the Guaranteed Party Company Name: New Asia Zhongning New Materials Technology (Quzhou) Co., Ltd. Unified Social Credit Code: 91330800069212626K Registered Capital: RMB 264.05 million Address: No. 62 Huayin North Road, Kecheng District, Quzhou City Business Scope: Licensed items: Production of hazardous chemicals; import and export of goods; import and export of technology (projects that require approval according to law can only be carried out after approval by relevant departments; the specific business projects are subject to the approval results). General items: Research and development of new material technologies; technical services, technology development, technical consulting, technology exchange, technology transfer, technology promotion; sales of chemical products (excluding licensed chemical products); sales of non-ferrous metal alloys; sales of electronic components and electromechanical equipment; enterprise management consulting (excluding projects that require approval according to law, business activities can be carried out independently with the business license). Relationship with the Company: It is a controlled grand-subsidiary of the Company. Most Recent Financial Data: As of December 31, 2025, New Asia Zhongning New Materials had total assets of RMB 839,924,187.95, net assets of RMB 496,845,772.96, and operating revenue of RMB 251,185,201.91 for the year 2025. The net profit was RMB -55,931,103.57. According to inquiry, New Asia Zhongning New Materials Technology (Quzhou) Co., Ltd. is not a dishonest judgment debtor. V. Accumulated Amount of External Guarantees and Progress of External Guarantees As of the date of this announcement, the Company's approved external guarantee limit is RMB 1.5 billion, and the total outstanding balance of external guarantees is RMB 440.55 million, accounting for 46.16% of the Company's audited net assets for 2025. The Company disclosed the "Announcement on Overdue Debt of a Subsidiary and Progress of Guarantee" (Announcement No.: 2026-010) on March 6, 2026. The principal of a loan of RMB 240 million from the Company's wholly-owned subsidiary, Zhejiang New Asia Zhongning New Energy Co., Ltd. (hereinafter referred to as "New Asia Zhongning"), was due and not repaid. For details of the overdue situation, please refer to the announcement. As of the date of this announcement, RMB 102 million of the principal of this loan has been repaid, and the outstanding principal balance is RMB 138 million. Regarding the remaining repayment matters, New Asia Zhongning has clarified the repayment direction with the creditor and is actively promoting the implementation of the plan. In addition to the above guarantees, the Company (including its subsidiaries) has no other external guarantee matters, nor any other overdue external guarantees, involved in lawsuits, or losses to be borne due to being ruled against in external guarantee litigation. VI. Impact on the Company Providing a performance guarantee for its subsidiary is conducive to supporting New Asia Zhongning New Materials in establishing a long-term procurement and exclusive supply cooperation with Party A, fully leveraging its production capacity, expanding business channels, and enhancing the Company's overall profitability. The financial risk of this guarantee is within the Company's controllable range and will not have an adverse impact on the Company's normal operations and business development, nor will it harm the interests of the Company and its shareholders, especially small and medium shareholders. VII. Documents for Inspection "Performance and Payment Guarantee Letter" Hereby announced. New Asia Process (Zhejiang) Co., Ltd. Board of Directors May 6, 2026