Guangdong Sanhe Pipe Co., Ltd. Announcement on Progress of Guarantees for Subsidiaries
The Company and the Board of Directors guarantee that the information disclosed is true, accurate, and complete, and contains no false records, misleading statements, or material omissions.
Special Notice: As of the disclosure date of this announcement, the Company and its subsidiaries have external guarantees for subsidiaries whose asset-liability ratio exceeds 70%. Investors are kindly requested to pay attention to the guarantee risks.
I. Overview of Guarantee Situation
Guangdong Sanhe Pipe Co., Ltd. (hereinafter referred to as the "Company") held the Twelfth Meeting of the Fourth Board of Directors on December 23, 2025, and the First Extraordinary Shareholders' Meeting of 2026 approved the "Proposal on the Company and its Subsidiaries Applying for Bank Credit Lines and Providing Guarantees in 2026". It was agreed that the Company and its subsidiaries would apply for a comprehensive credit line of no more than RMB 7,684,000,000 and USD 900,000 (converted to RMB 63,470,700 based on the central parity rate of RMB to USD announced by the China Foreign Exchange Trade System on December 23, 2025) from banks and other financial institutions in 2026. The credit line is valid for one year from the date of approval by the Company's Shareholders' Meeting. Within the credit period and credit limit, this credit line can be used cyclically. Depending on the applicant for the credit line, the Company and its subsidiaries will provide a total estimated guarantee amount of no more than RMB 2,805,000,000 (the form of guarantee includes, but is not limited to, joint and several liability guarantee, mortgage guarantee, etc., subject to the provisions of the principal credit agreement and guarantee agreement). Among them, the guarantee amount for subsidiaries with an asset-liability ratio exceeding 70% (including wholly-owned and控股 subsidiaries established, acquired, or otherwise obtained during the validity period of this guarantee authorization) is RMB 1,235,000,000, and the guarantee amount for subsidiaries with an asset-liability ratio not exceeding 70% is RMB 1,570,000,000. The Company's Shareholders' Meeting authorized the Company's Chairman (or his authorized representative) to represent the Company in negotiating with the management of the subsidiaries and determining the guarantee method and amount, and signing relevant guarantee agreements within the approved guarantee limit, based on the specific financing situation. For details, please refer to the "Announcement on the Company and its Subsidiaries Applying for Bank Credit Lines and Providing Guarantees in 2026" (Announcement No.: 2025-062) disclosed by the Company on the Juchao Information Network (http://www.cninfo.com.cn).
II. Progress of Guarantee