Announcement on Providing Guarantees for Subsidiaries
Company Code: 002394 Company Abbreviation: Lianfa Shares Announcement No.: LF2026-006
Jiangsu Lianfa Textile Co., Ltd.
Announcement on Providing Guarantees for Subsidiaries
The Company and the Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed in this announcement, and that there are no false records, misleading statements, or significant omissions.
Jiangsu Lianfa Textile Co., Ltd. (hereinafter referred to as the "Company") held the third meeting of the seventh Board of Directors on April 22, 2026, and deliberated and passed the "Proposal on Providing Guarantees for Subsidiaries." The aforementioned proposal needs to be submitted to the Company's shareholders' meeting for deliberation and approval. The details are as follows:
I. Overview of Guarantee Situation
To meet the capital needs for subsidiaries' daily operations and project construction, the Company plans to provide guarantees totaling no more than RMB 1.5 billion to financial institutions for some subsidiaries within the consolidated financial statements. Among them, the guarantee limit for subsidiaries with an asset-liability ratio of 70% or less (inclusive) shall not exceed RMB 600 million, and the guarantee limit for subsidiaries with an asset-liability ratio exceeding 70% shall not exceed RMB 900 million. The scope of guarantees includes, but is not limited to, comprehensive credit lines, loans, bills of exchange, letters of credit, factoring, guarantees, letters of guarantee, and financial leasing. The guarantee methods include, but are not limited to, joint and several liability guarantees and mortgage guarantees.