Overview of Guarantee Situation
(1) Approved Annual Guarantee Limit
Hubei Huitian New Materials Co., Ltd. (hereinafter referred to as "the Company") approved the proposal on the financing scale for 2026 and the guarantee limit for subsidiaries at the seventh meeting of the tenth board of directors held on April 20, 2026, and at the 2025 annual shareholders' meeting held on May 13, 2026. To meet the operational development needs of the Company and its subsidiaries, it was agreed that the Company and its consolidated subsidiaries would apply for financing from banks and other financial institutions not exceeding RMB 2.5 billion (including RMB 2.5 billion) in 2026. The Company will provide guarantees for loans, letters of guarantee, bank acceptance bills, commercial acceptance bills, letters of credit, and other financing matters for certain wholly-owned/controlling subsidiaries and the aforementioned subsidiaries, not exceeding RMB 2 billion (including RMB 2 billion). The authorization for the above financing and guarantee limits is valid from the date of approval at the 2025 annual shareholders' meeting until the date of the 2026 annual shareholders' meeting. For specific details, please refer to the announcement titled "Announcement on the Financing Scale and Guarantee Limit for Subsidiaries in 2026" published by the Company on the Giant Tide Information Network (www.cninfo.com.cn) (Announcement No.: 2026-20).
(2) Progress on Providing Guarantees for Subsidiaries
Recently, the Company received the "Maximum Guarantee Contract" signed with CITIC Bank Co., Ltd. Guangzhou Branch (hereinafter referred to as "CITIC Bank"). The Company provides a guarantee for the financing business between its wholly-owned subsidiary, Guangzhou Huitian New Materials Co., Ltd. (hereinafter referred to as "Guangzhou H