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🚨 Material Event

Progress Announcement on External Guarantees

Fengyuan Co., Ltd.··7 pages

✨ AI Summary

This announcement details the progress of external guarantees provided by Shandong Fengyuan Chemical Co., Ltd. The total amount of external guarantees is 644.13% of the company's latest audited net assets, with a new guarantee limit of up to RMB 1.91 billion approved. The company has signed a maximum guarantee contract for a total of RMB 2 billion to support its subsidiaries' business needs. Investors are advised to be aware of the associated risks.

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Full Translation

AI Translation· azure_openai

Shandong Fengyuan Chemical Co., Ltd. (hereinafter referred to as "the Company" or "the Listed Company") and all members of the Board of Directors guarantee that the content of this information disclosure is true, accurate, and complete, without false records, misleading statements, or significant omissions.

Special Risk Reminder: As of the date of this announcement, the total amount of external guarantees provided by Shandong Fengyuan Chemical Co., Ltd. and its holding subsidiaries accounts for 644.13% of the company's latest audited net assets. The amount of this guarantee accounts for 233.11% of the company's latest audited net assets. One of the guaranteed parties, Shandong Fengyuan Lithium Energy Technology Co., Ltd. (hereinafter referred to as "Fengyuan Lithium Energy"), is a wholly-owned subsidiary of the company. According to Fengyuan Lithium Energy's latest unaudited financial statements, as of March 31, 2026, its asset-liability ratio exceeds 70%. Another guaranteed party, Fengyuan (Yunnan) Lithium Energy Technology Co., Ltd. (hereinafter referred to as "Fengyuan Yunnan"), is a wholly-owned subsidiary of the company. According to Fengyuan Yunnan's latest unaudited financial statements, as of March 31, 2026, its asset-liability ratio also exceeds 70%. Investors are advised to pay attention to the related risks.

1. Overview of Guarantees

On April 28, 2026, and May 21, 2026, the company held the 20th meeting of the sixth Board of Directors and the 2025 annual shareholders' meeting, respectively, to review and approve the proposal on the estimated amount of external guarantees. The company and its subsidiaries agreed to provide a total new guarantee limit of no more than RMB 1.91 billion for subsidiaries within the scope of the consolidated financial statements, including no more than RMB 1.11 billion for subsidiaries with an asset-liability ratio below 70% and no more than RMB 800 million for subsidiaries with an asset-liability ratio above 70%. For specific details, please refer to the announcements disclosed by the company in the designated information disclosure media, including "Securities Times," "China Securities Journal," "Shanghai Securities Journal," "Securities Daily," and the Giant Tide Information Network (Announcement No.: 2026-012).

2. Progress of Guarantees

To meet the business development needs of the company's subsidiaries Fengyuan Lithium Energy, Fengyuan Yunnan, Anhui Fengyuan Lithium Energy Technology Co., Ltd. (hereinafter referred to as "Anhui Fengyuan"), and Shandong Fengyuan Huineng New Energy Materials Co., Ltd. (hereinafter referred to as "Fengyuan Huineng"), the company recently signed a "Maximum Guarantee Contract" with suppliers, providing a joint liability guarantee for the total payable amounts of Fengyuan Lithium Energy, Fengyuan Yunnan, Anhui Fengyuan, and Fengyuan Huineng, with a maximum limit not exceeding RMB 2 billion.

Basic Information of the Guarantee

Guaranteed PartyApproved Guarantee Amount for This YearGuarantee Balance Before This GuaranteeAmount Used from This Year's GuaranteeRemaining Available Guarantee Amount After This GuaranteeGuarantee Balance After This Guarantee
Fengyuan Lithium Energy400,000120,00050,000350,000170,000
Fengyuan Yunnan300,00084,78980,000220,000164,789
Anhui Fengyuan200,00060,07240,000160,000100,072
Fengyuan Huineng200,00085,78330,000170,000115,783

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